Five Star Quality Care (Amex: FVE) Blows Away Q2 Estimates: Shares Respond +18%

Five Star Quality Care (Amex: FVE) reported second quarter results today and topped analysts' EPS estimates by $0.12 per share. Five Star reported second quarter EPS of $0.22 on sales of $312 million and shares responded rather nicely, spiking up 18% to $3.52 on heavy volume. Five Star also eliminated some of its debt in the second quarter by purchasing and retiring $7.7 million outstanding Notes for $6.9 million, plus accrued interest, and recorded a $552,000 gain, net of related unamortized costs, on this early extinguishment of debt.

Some financial highlights from the second quarter:

• Total revenues for the second quarter of 2010 increased 5.7% to $311.9 million from $295.0 million for the same period last year.

• Income from continuing operations for the second quarter of 2010 was $8.2 million compared to $9.3 million for the same period last year.

• Income per share from continuing operations for the second quarter of 2010 was $0.23 and $0.22, basic and diluted, respectively, compared to $0.29 and $0.26, basic and diluted, respectively, for the same period last year. Analysts expected EPS of $0.09.
  

Five Star Quality Care is a senior living and healthcare services company. Five Star owns or leases and operates 213 senior living communities with 22,669 living units located in 30 states. These communities include independent living, assisted living and skilled nursing communities. Five Star also operates five institutional pharmacies and two rehabilitation hospitals.