Shares of Skilled Healthcare Group Inc. surged Tuesday after the company reported a boost in third-quarter revenue from its long-term care business and boosted its full-year guidance.
The stock rose 81 cents, or 21 percent, to $4.74 in morning trading.
Late Monday, the Foothill Ranch, Calif.-based company said it lost $25.3 million, or 68 cents per share, compared with net income of $9.1 million, or 24 cents per share, during the same period a year prior. The loss was mainly attributable to a legal settlement. In September, the company negotiated a $50 million settlement for a lawsuit over too-lean staffing levels in California.
Revenue rose 12 percent to $209.2 million from $187.4 million.
Excluding charges, the company earned 25 cents per share. Analysts polled by Thomson Reuters expected profit of 20 cents per share on revenue of $203.5 million.
Long-term care revenue rose 3.8 percent to $172.6 million, making up the bulk of the company's revenue.
Looking ahead, the company expects adjusted profit between 92 cents and 97 cents per share, up from prior guidance of between 87 cents and 92 cents per share. The company now expects revenue between $805 million and $812 million, up from prior guidance of $795 million and $805 million.
Citi Investment Research analyst Gary Taylor upgraded shares to "Buy" from "Hold", citing the financial results and the company's expansion. He also boosted his price target to $7 from $5.