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Are You Expecting This from HEALTHSOUTH?

By Seth Jayson - Updated Apr 10, 2017 at 1:45PM

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Checking expectations

HEALTHSOUTH (NYSE: HLS) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict HEALTHSOUTH's revenues will grow 4.7% and EPS will grow 13.5%.

The average estimate for revenue is $563.9 million. On the bottom line, the average EPS estimate is $0.42.

Revenue details
Last quarter, HEALTHSOUTH logged revenue of $552.9 million. GAAP reported sales were 7.4% higher than the prior-year quarter's $533.0 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.43. GAAP EPS of $0.38 for Q4 were 5.0% lower than the prior-year quarter's $0.40 per share.

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

Recent performance
For the preceding quarter, gross margin was 48.4%, 50 basis points better than the prior-year quarter. Operating margin was 18.0%, 50 basis points worse than the prior-year quarter. Net margin was 8.2%, 120 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.24 billion. The average EPS estimate is $1.65.

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 $26.73.

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