HCA Healthcare, Inc. (HCA) is scheduled to report fourth-quarter 2024 results on Jan. 24, before the opening bell. The Zacks Consensus Estimate for fourth-quarter earnings per share of $5.99 indicates a 1.5% increase from the prior-year figure of $5.90.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The earnings estimate has witnessed downward revisions over the past 60 days. The consensus estimate for fourth-quarter revenues of $18.1 billion indicates 4.6% growth from the year-ago ...

Analysts on Wall Street project that HCA Healthcare (HCA) will announce quarterly earnings of $5.99 per share in its forthcoming report, representing an increase of 1.5% year over year. Revenues are projected to reach $18.09 billion, increasing 4.6% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's ear ...

Company Performance - Shares of HCA Healthcare have experienced significant volatility this year, initially rallying due to encouraging margin developments but later giving back most of those gains due to weaker quarterly results influenced by hurricanes and concerns about spending cuts [2] Market Sentiment - The stock's performance reflects market sensitivity to external factors such as natural disasters and potential spending reductions, highlighting the importance of monitoring macroeconomic and company-specific developments [2] Analyst Perspective - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [2]

Valuation and Market Position - HCA Healthcare is currently trading at a forward 12-month P/E of 12.28X, higher than the industry average of 11.91X and peers like Universal Health Services (10.24X) and Tenet Healthcare (11.45X) [1] - The company's stock has risen 12.1% year-to-date, outperforming the industry average of 10.4% but lagging behind peers and the S&P 500 [12] - The premium valuation reflects market confidence in HCA's prospects, but a detailed analysis is needed to determine if it is justified by fundamentals and growth potential [8] Financial Performance and Shareholder Returns - HCA repurchased $3.8 billion worth of shares in 2023 and $4.3 billion in the first nine months of 2024, with $525 million paid in dividends during the same period [3] - The company generated $5.9 billion in free cash flow over the trailing 12 months, a 25.5% year-over-year increase, following 13.6% growth in the prior year [9] - HCA ended Q3 2024 with $2.9 billion in cash and cash equivalents, but long-term debt rose to $38.3 billion, resulting in a debt-to-capital ratio of 97.99%, significantly higher than the industry average of 85.33% [17] Operational Performance and Growth Drivers - Same-facility equivalent admissions grew 4.5% year-over-year in Q3, while revenue per equivalent admission increased 2.5% [10] - The resumption of deferred elective procedures has driven higher patient volumes and occupancy levels, prompting investments in clinical systems, digital capabilities, and care models [4] - HCA beat earnings estimates in each of the past four quarters with an average surprise of more than 9% [5] Earnings and Revenue Outlook - The Zacks Consensus Estimate for 2024 earnings is $21.90 per share, indicating 15.2% year-over-year growth, with a further 13.1% increase expected in 2025 [11] - Revenue estimates for 2024 and 2025 suggest year-over-year growth of 8.4% and 5.9%, respectively [11] Industry Challenges and Tailwinds - The hospital industry, including HCA, faces headwinds such as potential reductions in government spending, policy changes, decreased hospital funding, and the expiration of insurance subsidies [22] - Despite these challenges, HCA's strong cash generation, rising admissions, and growing demand for services position it well to navigate uncertainties [23] Stock Performance and Investor Considerations - HCA's stock has faced a decline since the end of Q3, mirroring a broader dip among hospital operators due to industry challenges [6] - Current shareholders are advised to stay invested, while new investors should wait for a better entry point and monitor the company's debt burden and rising expenses [15]

HCA Healthcare TodayHCAHCA Healthcare$309.60 -4.33 (-1.38%) 52-Week Range$263.22▼$417.14Dividend Yield0.85%P/E Ratio13.90Price Target$387.13Add to WatchlistThe plight of medical providers collecting timely reimbursements from health insurers is a struggle that has been getting tougher by the year. Health insurance claim denials have come under scrutiny in light of recent events. Sentiment has turned sour on the medical sector stocks of insurance carriers and healthcare facilities and operators. Adding to t ...

For Immediate ReleaseChicago, IL – November 12, 2024 – Today, Zacks Equity Research like HCA Healthcare, Inc. (HCA) , Tenet Healthcare Corp. (THC) , Universal Health Services, Inc. (UHS) , Acadia Healthcare Company, Inc. (ACHC) and Community Health Systems, Inc. (CYH) .Industry: HospitalLink: https://www.zacks.com/commentary/2368306/5-hospital-stocks-set-to-thrive-amid-robust-industry-trendsThe Zacks Medical-Hospital industry is benefiting from several positive trends, including growing admissions, resumpti ...

HCA Healthcare TodayHCAHCA Healthcare$357.19 -1.55 (-0.43%) 52-Week Range$225.32▼$417.14Dividend Yield0.74%P/E Ratio16.04Price Target$379.11Add to WatchlistHCA Healthcare NYSE: HCA is the third-largest company in the U.S. healthcare providers and services industry. Shares have slid recently, down over 13% from the all-time high they reached on Oct. 18. A disappointing earnings report partially caused this, leading the share price to drop 10% since the release. Before the report, analysts had raised their pr ...

Core Viewpoint - HCA Healthcare reported strong Q3 2024 earnings, driven by improved admissions and surgeries, while facing challenges from hurricanes [1][3][16] Q3 Results - Adjusted EPS for Q3 2024 was $5.05, beating estimates by 1.6% and improving 29.2% year-over-year [3] - Revenues reached $17.5 billion, a 7.9% year-over-year increase, but slightly missed consensus estimates [3] Impact of Hurricanes - Hurricanes Helene and Milton impacted operations, costing $50 million or 15 cents per diluted share in Q3 [4] - Expected combined impact for Q4 is between $200 million and $300 million or 60-90 cents per diluted share [4][5] Outlook - HCA reaffirmed its 2024 guidance, expecting metrics to be in the lower half of ranges [6] - Anticipates volume growth of 3-4% in 2025, exceeding long-term expectations of 2-3% [6] Long-Term Growth Prospects - Strong demand for emergency care and growth in cardiac services are expected to drive results [7] - Admissions increased by 5.8% year-over-year in the first nine months of 2024 [7] - Plans to add 600 inpatient beds and 100 outpatient facilities by the end of 2024 [8] Technology and Efficiency - HCA is focusing on artificial intelligence for staffing and revenue cycle management, expecting growth in technology-related capital expenditures [9] Stock Performance - HCA shares gained 33.2% year-to-date, outperforming the hospital industry and S&P 500 Index [10] - The consensus estimate for 2024 adjusted EPS is $22.42, indicating 17.9% year-over-year growth [11] Valuation - HCA is trading at a forward P/E of 14.69X, slightly above the industry average of 14X [14] - Compared to peers, HCA's valuation is higher than Tenet Healthcare and lower than Universal Health Services [15]

Key Takeaways The S&P 500 slipped less than 0.1% on Friday, Oct. 25, closing out a trading week in which earnings season kicked into gear. Shares of flooring manufacturer Mohawk Industries dropped as softness in the housing market weighed on its quarterly results. Tapestry shares jumped after a federal judge blocked the fashion holding company's acquisition of luxury peer Capri Holdings. Major U.S. equities indexes were mixed on the final day of trading in a week dominated by a steady flow of earnings repor ...

Financial Data and Key Metrics Changes - Diluted earnings per share, as adjusted, increased by 25% to $4.90, including an estimated impact of $0.15 per share from lost revenue and additional expenses due to Hurricane Helene [6][13] - Revenue growth for the quarter was 7.9% compared to the prior year, with adjusted EBITDA margin improving by 90 basis points [14][15] - Cash flow from operations was $3.5 billion, with capital expenditures totaling $1.19 billion and $1.79 billion spent on share repurchases [16][17] Business Line Data and Key Metrics Changes - Inpatient admissions grew by 4.5% year-over-year, with adjusted admissions also increasing by 4.5% [8] - Emergency room visits rose by 4.6%, while inpatient surgeries increased by 1.6% [8] - Outpatient surgery was the only major service category that declined, down by 2%, although revenue in this service line increased by 5% due to acuity and payer mix [8][9] Market Data and Key Metrics Changes - Payer mix improved across service lines, contributing to same facilities revenue growth of 7.1% [9] - Medicare admissions increased by 5%, while Medicaid admissions decreased by 8.5% [42] - Managed care volume excluding exchanges grew just short of 4%, and exchange volume saw a 43% increase [42] Company Strategy and Development Direction - The company plans to add approximately 600 inpatient beds and 100 new outpatient facilities by the end of the year, bringing total sites of care to over 2,600 [9] - The company has around $6 billion in projects under development, aimed at increasing capacity and access to healthcare services [9] - The management emphasized a stable operating environment for 2025, with expectations of volume growth continuing at elevated levels of 3% to 4% [11][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of hurricanes on operations but expressed confidence in recovery and future performance [6][13] - The company anticipates additional expenses and loss of revenue of approximately $200 million to $300 million in Q4 2024 due to hurricane-related issues [13] - Management expects earnings growth near or slightly above the upper end of long-term target ranges for both diluted earnings per share and adjusted EBITDA in 2025 [11][36] Other Important Information - The company is focusing on technology and AI investments to improve operational efficiency and clinical outcomes [52][54] - The company has seen a modest benefit from Medicaid Supplemental Payment Programs, projecting a tailwind of $100 million to $200 million in 2024 [35] Q&A Session Summary Question: Clarification on 2025 outlook and volume strength - Management confirmed that ongoing hurricane effects in 2025 are manageable and primarily in North Carolina, with strong volume growth expected [20][21] Question: Claim denial trends and 2 midnight claims - Management noted that denial activities have increased but emphasized successful mitigation strategies, with no material impact from denials in Q3 2024 [24] Question: Pricing assumptions for 2025 - Management indicated early planning for 2025 suggests cash net revenue per adjusted admission growth of 2% to 3% [30] Question: Update on contracting environment with Medicare Advantage plans - Management stated that they are largely contracted across major Medicare Advantage payers and have secured renewals [60] Question: Impact of hurricanes on long-term strategy - Management affirmed that hurricanes do not affect long-term strategy, as facilities have historically recovered and improved performance post-storm [63][64] Question: Outpatient surgical trends and insurance coverage - Management reported that outpatient surgery volume remains down, primarily due to Medicaid and uninsured patients, but profitability has improved [67][69]