FOOTHILL RANCH, Calif. (AP) — Nursing home operator Skilled Healthcare Group Inc. on Thursday boosted its full-year profit estimate, citing better-than-expected results from the hospice and home health care units.
The company now expects adjusted earnings between $1.01 and $1.04 per share on revenue between $816 million and $819 million. Previously, the company expected profit between 92 cents and 97 cents per share, on revenue between $805 million and $812 million.
Analysts polled by FactSet had expected profit of 96 cents per share on $810.5 million in revenue.
The company expects net income between $1.22 and $1.32 per share in 2011 on revenue between $880 million and $900 million. Analysts had expected guidance for profit of 90 cents per share on $857.1 million in revenue.
"The performance of our hospice and home healthcare businesses has exceeded our expectations and these businesses are expected to grow further," said Chairman and CEO Boyd Hendrickson, in a statement.
The company said it has completed the initial phases of its initiatives in preparation Medicare program changes. Those initiatives include staffing enhancements, training programs, and enhanced audit and compliance measures. Meanwhile, the company expects occupancy rates to rise in 2011.
Shares of Skilled Healthcare Group jumped $1.25, or 13.1 percent, to $10.78 in morning trading. The stock earlier reached a 52-week high of $11.50.