HealthSouth raises outlook; profit falls in third quarter

Hospital operator HealthSouth Corp.'s third-quarter net income tumbled 98% from a year ago when the company recorded a big tax benefit, but the company raised its 2008 per-share earnings forecast on its efforts to reduce debt. Shares were up 10% to $13.50 in after-hours trading. HealthSouth reported net income of $6.6 million, or less than 1 cent a share, down from $287.6 million, or $3.13 cents a share, a year earlier. The latest quarter included a $17.1 million charge related to its securities litigation, while the year-ago period reflected a $281.2 million tax benefit and a $40.4 million gain on the sale of certain operations.