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Sun Healthcare Q1 Profit Jumps 43%

Irvine-based Sun Healthcare Group Inc. on Tuesday reported first-quarter financial results that were in line with analysts’ expectations.

Sun, an operator of nursing homes, rehabilitation facilities and hospices, said its quarterly profit from continuing operations was $11.6 million, up 43% from 2008’s first quarter.

Analysts expected Sun to make $11.4 million in the first quarter.

Sun said its first-quarter net profit was $10.2 million.

First-quarter revenue rose 4% to $468.3 million, versus Wall Street’s projection of $471.4 million in sales.

In a release, Sun said its revenue gain was driven by several factors, including an 8% hike in Medicare revenue.

The company also said Medicaid made up nearly 44% of its revenue, a new low for the company.

Shares of Sun tend to fluctuate on concerns about government funding for nursing homes.

Sun, on a conference call, reaffirmed its 2009 outlook of $51.3 million to $52.8 million in profit from continuing operations, above analysts’ forecast of $50.5 million.

Sun expects its full-year revenue to come in at $1.92 billion to $1.93 billion, in line with Wall Street’s expectations.

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