Jefferies Expects In Line Quarter From HEALTHSOUTH Corp. (HLS)

Jefferies & Co. expects an inline quarter from HEALTHSOUTH Corp. HLS. In a note to clients, Jefferies writes, "HLS has already provided its initial 4Q observations, with mgmt anticipating discharge growth of 5.3% Y/Y (SS +2.9%) and a 2.5%-2.7% Y/Y increase in rev/discharge. We expect the company to remain conservative with its initial FY11 EBITDA guidance and would not be surprised to see EPS guidance provided on a fully taxed basis -- cash taxes would not be impacted. Given the lack of potential catalysts in HLS' Q4 print, we expect the stock to trade sideways on the quarter." Shares of HLS gained $1.00 on Friday to close at $23.59, a gain of 4.4%.