(HCR) - Growth stock for long-term Baby Boomer play - Manor Care, Inc

Manor Care, Inc. (HCR) met or exceeded analysts' earnings expectations for the past 11 quarters. The company's expansion plans should help fuel future growth. Earnings per share are projected to grow 15.4% over the next 3-5 years. The company is currently yielding 1.3% and has a five-year average dividend yield of 0.90%. Full Analysis Manor Care, Inc. through its operating group HCR Manor Care, provides a range of healthcare services including short-term post-acute medical care and rehabilitation and long-term skilled nursing care. The company operates in two segments: long-term care and hospice and home health. It has been quite some time since HCR missed the Street's earnings estimate dating back to the third quarter of 2003 to be exact. Thus, the company has met or exceeded analysts' estimates for the past 11 quarters-posting positive surprises on eight occasions. On Jul 28 HCR reported profits of 58 cents per share, soaring past its earnings in the prior-year period by 20.8% and surprising to the upside by 7.4%. Revenues climbed 7.2% to $894 million, versus $834 million in the second quarter of 2005. Earnings and revenues also increased sequentially. Chairman, President and CEO Paul A. Ormond stated, 'Each of our major business sectors performed well in the second quarter and we believe there are continuing opportunities across the board, especially in our hospice operations.' In the second quarter, HCR completed the expansion of six skilled nursing centers, with 36 more in progress. As far as new construction, five new skilled nursing centers are being built and one inpatient hospice facility has already opened its doors. With $40 million invested in new construction, expansion and acquisitions, the company's growth prospects are very appealing. Consensus estimates for this year and next year have risen 3.6% and 3.9%, respectively, over the past 90 days. Three analysts upped their profit forecasts for this year while four followed suit for next year. Earnings per share grew 16.2% over the past five years and are forecasted to grow 15.4% over the next 3-5 years. The Board of Directors recently declared a quarterly cash dividend of 16 cents per common share of stock, payable on Aug 28, 2006 to shareholders of record as of Aug 14, 2006. The company is currently yielding 1.3% and has a five-year average dividend yield of 0.90%. HCR's return on equity of 22% is in line with the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home