HEALTHSOUTH (NYSE: HLS) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), HEALTHSOUTH beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.

Gross margins expanded, operating margins grew, net margins shrank.

Revenue details
 HEALTHSOUTH logged revenue of $537.0 million. The 14 analysts polled by S&P Capital IQ foresaw revenue of $522.1 million on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $497.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.37. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.44 for Q3 were 19% lower than the prior-year quarter's $0.54 per share. (The prior-year quarter included $0.37 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 46.7%, 90 basis points better than the prior-year quarter. Operating margin was 19.0%, 90 basis points better than the prior-year quarter. Net margin was 8.8%, 270 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $542.5 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $1.52.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HEALTHSOUTH is outperform, with an average price target of $26.54.