Lifepoint Hospitals Profit Tops Estimate, Lifts Outlook; Stock Up - Update

(RTTNews) - Lifepoint Hospitals Inc (LPNT) Friday reported a better-than-expected increase in second-quarter profit, helped by a 17 percent climb in revenue.

The company lifted its guidance for 2014, which sent its shares up more than 6 percent in morning trade on the Nasdaq.

Lifepoint benefited from higher margins, recent acquisitions, and tapped the potential of expanded coverage under healthcare reform, said William Carpenter III, the company's chief executive officer.

Lifepoint, based in Brentwood, Tennessee, posted quarterly net earnings of $39 million or $0.84 per share, compared with $27.4 million or $0.57 per share last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue for the second quarter climbed to $1.04 billion from $895 million a year ago, topping analysts' expectations of $1.01 billion.

Admissions on a same-hospital basis slid 2.1 percent for the quarter; inpatient surgeries dropped 3.4 percent, and outpatient surgeries gained 5.3 percent.

For fiscal year 2014, Lifepoint now projects earnings of $2.99 to $3.19 per share, up from a prior range of $2.38 to $2.78 per share. Revenue for the year are now anticipated in the range of $4.25 billion to $4.35 billion, with revenues of $4 billion to $4.1 billion.

The company's stock is trading $69.77, up $4.28 or 6.54%, on a volume of more than 1 million shares.