AmSurg shares jump as 1Q profit rises on new centers

AmSurg shares rose $3.08, or 13.9 percent to $25.28 in midday trading. The stock has traded between $21.93 and $29.76 over the last 52 weeks.

On Tuesday, AmSurg said it earned $11.7 million, or 37 cents per share, compared with profit of $10.3 million, or 34 cents per share, during the same period a year prior. Revenue rose 18 percent to $147.4 million from $125.2 million.

Analysts polled by Thomson Financial expected profit of 37 cents per share on revenue of $146.7 million

The company added two new centers during the quarter and has added 19 centers since the first quarter of 2007.

Continuing centers in operation rose to 177 by the end of the quarter.

"As expected, strong acquisition and development activity accounted for the majority of AmSurg's growth," William Blair analyst Ryan Daniels said in a note to investors.

But, he said, a shift in Medicare reimbursement rates will likely continue to hamper same-facility revenue growth over the next four years. He reaffirmed a "Market Perform" rating for the company.

Jefferies & Co. analyst Arthur Henderson, though, reaffirmed a more optimistic "Buy" rating, citing the stock's chance to trade at $30 within the next 12 months on low reimbursement and operational risks.

"AmSurg's management team continues to work diligently at driving higher same-center net revenue growth while simultaneously putting initiatives in place to yield higher internal efficiencies and profitability," he said in a note to investors.