HealthSouth (NYSE: HLS) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), HealthSouth beat expectations on revenues and missed estimates on earnings per share.

Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.

Gross margins shrank, operating margins improved, net margins dropped.

Revenue details
HealthSouth reported revenue of $538.6 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $525.8 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $506.0 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 13 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.39 for Q1 were 51% lower than the prior-year quarter's $0.79 per share.

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 46.0%, 70 basis points worse than the prior-year quarter. Operating margin was 20.0%, 50 basis points better than the prior-year quarter. Net margin was 8.3%, 750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $530.1 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $1.47.

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 $24.85.

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