Top Performer for Thurs: HealthSouth (HLS)

HealthSouth Corporation (HLS - Analyst Report) is up approximately 3.3% Thursday, which makes it a Zacks #1 Rank Top Performer during what has been a tough morning session.

In its second-quarter report from August, the company raised its 2009 profit outlook. Earnings estimates moved sharply higher in response and have remained at those heightened levels since.

HLS is scheduled to report third-quarter numbers early next month.

Volume today for the country's largest provider of inpatient rehabilitative healthcare services is at 566,000 shares, above its daily average at 556,000.

HLS is part of the Medical-Outpatient/Home Care industry. There is 1 other name from this space on today's Zacks #1 Rank List: Emergency Medical Services Corporation (EMS - Snapshot Report).

Earnings Estimates

The Zacks Consensus Estimate for this year and next is at $1.32 and $1.43 per share, respectively. Both outlooks have seen sharp advances over the past 2 months.

This year's estimate is up about 25.7% in that time from $1.05, while next year has advanced about 24.3% from $1.15.

On a year-over-year basis, analysts currently expect next year's profit to increase around 8.3% from this year.

HLS will report its third-quarter results on Nov 4. The Zacks Consensus Estimate for this quarter is at 24 cents per share, signifying a gain of 33.3% over the past 2 months from 18 cents.

Second Quarter

Two things stick out from the company's second-quarter report: a raised profit guidance for 2009 and a continuation of better-than-expected quarterly earnings.

HLS boosted its adjusted earnings per share forecast to between $1.15 and $1.25 for the year, versus the previous prediction of 85 cents to 90 cents. It credited strong operating results for the first 6 months of the year for the revision.

For the quarter itself, earnings per share of 30 cents beat the Zacks consensus Estimate by 25%, continuing a string of positive quarterly surprises. Averaging the last 4 quarters, HLS has put together a surprise of 88%.

Meanwhile, revenues advanced nearly 6% to $483.7 million from $456.6 million. The increase was fueled by a 5.6% gain in patient discharges quarter over quarter.

HLS President and CEO Jay Grinney said that the second-quarter's strong results were brought about by "continued volume growth and disciplined expense management".