Morgan Keegan Previews NHC 1Q, Anticipates EPS Of $0.72

Morgan Keegan reports that its EPS estimate of $0.72 is the only published estimate and is up from $0.60 in the prior year period. “We continue to view the favorable RUG-IV Medicare rates as a driver to strong earnings growth in 2011 that could exceed our estimates,” Morgan Keegan writes. “National Healthcare Corp. NHC also offers investors a strong balance sheet and a 2.4% dividend yield. NHC realized a nearly 16% sequential increase in its Medicare per diem during the fourth quarter and we expect further improvement, barring any cuts that the Centers for Medicare & Medicaid Services may propose in coming days.” National Healthcare closed Thursday at $46.24.