Uncertainties Still Shadow Strong Second Quarter For Sun (SUNH)

Yesterday, Morgan Keegan gave Outperform ratings with speculative suitability to Sun Healthcare Group, Inc. SUNH, a week prior to the company’s second quarter results on July 28. Indicating the second quarter to have been strong for Sun, the analysts reported their EPS estimate of 0.27%, $0.02 above the First Call consensus, for the company. They feel that the proposed 2011 fiscal Medicare rates released by the government are favourable, but uncertainty about Medicare and Medicaid outpatient therapy payments, which accounted for 78% of Sun’s First Quarter revenue, continues. They stated that the company’s reimbursement uncertainty from pending share offering and split to operating and a property company.