J.P. Morgan Raises HealthSouth EPS Estimate (HLS)

Following positive comments from management and a better-than-estimated 1Q10, J.P. Morgan raised HealthSouth Corp. HLS 2010 and 2011 EPS estimates by $0.10 each to $1.75 and $1.95, respectively. J.P. Morgan maintains a Neutral rating on HealthSouth shares. J.P. Morgan analysts raise earnings estimates "due to a better operating expense management, this now more fully factored into our outlook, and this, combined with somewhat better pricing, more than offset lighter volume trends." J.P. Morgan expects 2Q10 commentary to "be driven by better operating performance rather than a stronger top line." HealthSouth Corporation (HealthSouth) is a provider of inpatient rehabilitative healthcare services. Shares closed June 28 at $19.11.