Group 1 - HCA Healthcare reported quarterly earnings of $6.45 per share, exceeding the Zacks Consensus Estimate of $5.77 per share, and up from $5.36 per share a year ago, representing an earnings surprise of 11.79% [1] - The company posted revenues of $18.32 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.08%, and an increase from $17.34 billion year-over-year [2] - HCA shares have increased approximately 13.8% since the beginning of the year, contrasting with the S&P 500's decline of -6.8% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $6.18 on revenues of $18.45 billion, and for the current fiscal year, it is $24.98 on revenues of $74.69 billion [7] - The Medical - Hospital industry, to which HCA belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating strong performance potential [8] Group 3 - HCA has surpassed consensus EPS estimates in all four of the last quarters, indicating consistent performance [2] - The estimate revisions trend for HCA is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Core Insights - HCA Healthcare reported strong Q1 2025 results, exceeding market expectations in both earnings and revenue [1] - The company achieved an adjusted EPS of $6.45, surpassing the anticipated $5.75, and reported revenue of $18.32 billion, slightly above the expected $18.26 billion [1][2] Financial Performance - Adjusted EPS for Q1 2025 was $6.45, a 20.3% increase from Q1 2024's $5.93 [2] - Revenue reached $18.32 billion, reflecting a 5.7% year-over-year growth from $17.34 billion in Q1 2024 [2] - Net income was reported at $1.61 billion, a 1.2% increase from $1.59 billion in Q1 2024 [2] - Adjusted EBITDA for the quarter was $3.73 billion, up 11.3% from $3.35 billion in Q1 2024 [2] - Cash flows from operations decreased to $1.65 billion, down 33.1% from $2.47 billion in Q1 2024 [2] Company Overview - HCA Healthcare is a leading for-profit operator of healthcare facilities in the U.S., managing hospitals, surgery centers, and emergency care centers [3] - The company focuses on patient care and invests in technology and staff to drive growth [3] - Key success factors include adapting to regulatory changes and optimizing healthcare delivery through digital transformation [3] Operational Challenges - The company faces challenges in maintaining profitability due to rising labor costs and reimbursement pressures [4] - Despite these challenges, operational efficiency was strong, supported by increased demand for healthcare services [5] - Regulatory challenges persist, particularly due to reliance on Medicare and Medicaid [6] - Same-facility equivalent admissions increased by 2.8%, while outpatient surgeries declined by 2.1% in Q1 2025 [6] Human Capital Management - Improvements in human capital management were noted, with salaries and benefits as a percentage of revenue decreasing from 44.4% in Q1 2024 to 43.6% in Q1 2025 [7] - The company expanded its operational footprint, increasing the number of hospitals to 190 and outpatient centers to approximately 2,400 [7] Future Outlook - HCA management reaffirmed guidance for full-year 2025 revenue between $72.8 billion and $75.8 billion, with adjusted EBITDA projected between $14.3 billion and $15.1 billion [8] - The company will continue to monitor regulatory changes and labor market dynamics, with strategic investments in technology and human capital expected to support operational capabilities [9]

Financial Performance - Revenues for Q1 2025 totaled $18.321 billion, a 5.7% increase from $17.339 billion in Q1 2024[2] - Net income attributable to HCA Healthcare, Inc. was $1.610 billion, or $6.45 per diluted share, compared to $1.591 billion, or $5.93 per diluted share in Q1 2024[2][17] - Adjusted EBITDA for Q1 2025 was $3.733 billion, up from $3.353 billion in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $3,733 million, representing a margin of 20.4%, compared to $3,353 million and a margin of 19.3% in Q1 2024[25] - The forecast for total revenues for the year ending December 31, 2025, is between $72,800 million and $75,800 million[30] - The projected net income attributable to HCA Healthcare, Inc. for 2025 is between $5,850 million and $6,290 million[30] Operational Metrics - Same facility admissions increased by 2.6% and same facility equivalent admissions rose by 2.8% compared to the prior year[4][5] - Admissions in Q1 2025 were 576,361, reflecting a 2.8% increase from 560,869 in Q1 2024[22] - The number of hospitals increased to 192 in Q1 2025 from 188 in Q1 2024, and licensed beds rose to 50,571 from 49,724[22] - The average length of stay in Q1 2025 was 4.922 days, slightly down from 4.959 days in Q1 2024[22] - The company reported a decrease in outpatient surgery cases by 2.5% in Q1 2025 compared to Q1 2024[22] Cash Flow and Debt - Cash flows from operating activities in Q1 2025 totaled $1.651 billion, down from $2.469 billion in Q1 2024[6] - As of March 31, 2025, total debt was $44.576 billion, with cash and cash equivalents of $1.060 billion[6] - Cash and cash equivalents at the end of Q1 2025 were $1,060 million, down from $1,933 million at the end of Q4 2024[20] Shareholder Returns - The company repurchased 7.762 million shares at a cost of $2.506 billion during Q1 2025[7] - A quarterly cash dividend of $0.72 per share was declared, payable on June 30, 2025[8] Guidance and Future Outlook - The company reaffirmed its 2025 estimated guidance ranges, expecting stable operating conditions and volume growth[10][11] - The Company does not forecast the impact of items such as losses on sales of facilities and legal claim costs due to the inability to predict these items accurately[33] Adjusted EBITDA - Adjusted EBITDA is not a measure of financial performance under GAAP but is considered important for discussions and analysis of operational results[33] - Management relies on Adjusted EBITDA as a primary measure to review and assess the operating performance of its health care facilities[33]

Due to the essentiality of healthcare, the medical sector can provide a defensive hedge against market uncertainty, and investors may be eyeing AbbVie (ABBV)  and HCA Healthcare (HCA)  stock ahead of their Q1 reports on Friday, April 25.Being the largest non-governmental operator of acute care hospitals in the United States, HCA shares are up a very respectable +11% year to date, with pharmaceutical giant AbbVie’s stock virtually flat but outperforming the benchmark S&P 500’s 10% decline as well. That said, ...

Group 1: Earnings Estimates - HCA Healthcare is expected to report first-quarter 2025 earnings of $5.77 per share on revenues of $18.31 billion, indicating a year-over-year earnings growth of 7.7% and revenue growth of 5.6% [1][2] - For the full year 2025, the revenue estimate is $74.69 billion, reflecting a 5.8% increase year-over-year, while the EPS estimate is $24.98, implying a 13.8% increase year-over-year [2] Group 2: Recent Performance - HCA Healthcare has consistently beaten earnings estimates in the last four quarters, with an average surprise of 5.9% [2] - The company has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating uncertainty regarding an earnings beat for the upcoming quarter [3] Group 3: Operational Metrics - The consensus estimate for equivalent admissions shows a 3.4% year-over-year growth, while the model predicts a 3.5% increase; revenue per equivalent admission is expected to rise by 2% [5] - Equivalent patient days are estimated to grow by 1.8% year-over-year, but rising expenses and lower occupancy rates pose challenges [6] Group 4: Expense and Occupancy Trends - Total operating expenses are projected to increase by 5.8% year-over-year, driven by higher salaries, benefits, and supply costs, with supply costs expected to rise nearly 8% [7] - The occupancy rate is estimated at 72.68%, down from 75.20% a year ago, and the average length of stay is expected to decline by 2.4% [7]

Core Insights - HCA Healthcare is expected to report quarterly earnings of $5.77 per share, reflecting a year-over-year increase of 7.7% and revenues of $18.31 billion, up 5.6% from the previous year [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1][2] Key Metrics Projections - Revenue per Equivalent Admission is projected to reach $18,026.95, compared to $17,666 in the same quarter last year [4] - Equivalent Admissions are estimated at 1.02 billion, up from 981.52 million year-over-year [4] - Admissions are expected to total 579.28 million, an increase from 560.87 million [5] - Equivalent Patient Days are projected at 4.96 million, compared to 4.87 million last year [5] - Average Length of Stay is expected to remain at 5 days, consistent with the previous year [5] - The Number of hospitals is projected to increase to 191 from 188 [6] - Inpatient Revenue per Admission is estimated at $19,580.02, up from $18,923 in the same quarter last year [6] - Licensed Beds at End of Period are expected to reach 50,132, compared to 49,724 last year [7] - Patient Days are projected at 2,817.09, up from 2,781.6 days year-over-year [7] - The Number of freestanding outpatient surgery centers is expected to be 124, compared to 121 last year [8] Stock Performance - Over the past month, HCA shares have recorded a return of -4.9%, while the Zacks S&P 500 composite has seen a decline of -8.9% [8]

Core Insights - The article discusses an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth in this industry [1]. Group 1: Investment Service Features - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2]. - A promotional offer is available for a two-week free trial, encouraging new users to explore opportunities in the oil and gas market [3].

Market Overview - The three major U.S. indexes, Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, experienced significant declines of 9.89%, 9.58%, and 8.78% respectively last week due to President Trump's reciprocal tariff policies implemented on April 2, 2025, raising fears of a near-term recession [1] - Analysts predict a slowdown in economic growth and a rise in short-term inflation, with the core personal consumption expenditure (PCE) inflation marking a monthly gain of 0.4% in February 2025, the largest since January 2024 [2] Economic Indicators - The Institute of Supply Management (ISM) reported that manufacturing PMI contracted to 49% and services PMI to 50.8% in March, indicating a contraction in manufacturing activities [3] - Job openings fell by 194,000 to 7.568 million in February, marking the lowest level since September 2024, with the employment index declining to 46.2% in March from 53.9% in February [3] Investment Performance - PhenixFIN Corporation (PFX) shares gained 6.2% since being upgraded to Zacks Rank 1 on February 12, while United Fire Group, Inc. (UFCS) returned 5.2% since its upgrade on February 13, both outperforming the S&P 500's significant declines [4][5] - A hypothetical portfolio of Zacks Rank 1 stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500, but had a strong performance in 2024 with a return of +22.3% [5][6] Zacks Recommendations - EZCORP, Inc. (EZPW) and Palomar Holdings, Inc. (PLMR) saw share increases of 13.4% and 5% respectively since their Zacks Recommendation upgrades to Outperform [8] - The Zacks Focus List portfolio, which includes HCA Healthcare, Inc. (HCA) and Palantir Technologies Inc. (PLTR), returned +0.87% this year through February 2025, outperforming the S&P 500's -14.2% decline over the same period [11][12] Long-term Performance - The Zacks Top 10 portfolio has produced a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500's +469.98% return in the same timeframe [24]

Market Overview - Wall Street experienced significant losses, with the Dow recording back-to-back losses exceeding 1,500 points on April 3 and 4, including a drop of 2,231 points on April 4, marking one of the highest single-day declines in history [4] - The S&P 500 index fell more than 10% over the last two trading days of the previous week, with a 6% drop on April 6, its worst day since March 2020, currently in correction territory with a 17% decline from its February peak [5] - The Nasdaq Composite also plummeted 6% on each of the last two trading days, now in bear territory with a 22% drop from its recent high, while the CBOE VIX reached 45 on April 4, indicating extreme market fear [6] Defensive Stocks Recommendations - Investing in defensive sectors such as consumer staples, utilities, and healthcare is recommended, with five stocks identified: Molson Coors Beverage Co. (TAP), CenterPoint Energy Inc. (CNP), WEC Energy Group Inc. (WEC), Abbott Laboratories (ABT), and HCA Healthcare Inc. (HCA) [3][7] Company Insights Molson Coors Beverage Co. (TAP) - TAP has shown strong performance in Canada and EMEA&APAC, with Q4 2024 results surpassing estimates and year-over-year earnings growth [11] - Projected sales growth for 2025 is in low-single digits, with underlying EPS expected to grow in high-single digits [12] - Current revenue and earnings growth rates are 0.1% and 6.9%, respectively, with a dividend yield of 3.07% [13] CenterPoint Energy Inc. (CNP) - CNP is positioned to benefit from rising electricity demand due to the electrification of transportation and investments in renewable energy [14] - The company is investing in infrastructure to support electric vehicle (EV) growth, including off-road electrification initiatives [16] - Expected revenue and earnings growth rates for the current year are 3.2% and 8%, respectively, with a dividend yield of 2.44% [17] WEC Energy Group Inc. (WEC) - WEC is benefiting from both organic and inorganic growth, with strategic investments aimed at enhancing infrastructure and achieving net carbon neutrality by 2050 [18] - Demand from commercial and residential customers is improving, with expected revenue growth in the 2025-2027 period [19] - Current revenue and earnings growth rates are 9.2% and 8.5%, respectively, with a dividend yield of 3.42% [20] Abbott Laboratories (ABT) - ABT utilizes AI for healthcare solutions, including advanced medical imaging and predictive algorithms for heart attack prevention [21] - The company holds a strong position in point-of-care testing across various health areas [22] - Expected revenue and earnings growth rates for the current year are 5.9% and 10.3%, respectively, with a dividend yield of 1.90% [23] HCA Healthcare Inc. (HCA) - HCA's revenues are increasing due to growth in admissions and surgeries, with projected revenues for 2025 between $72.8 billion and $75.8 billion, indicating a 5.2% rise from 2024 [24] - The company has benefited from acquisitions and its telemedicine business, with operating cash flows rising 11.5% year over year in 2024 [25] - Expected revenue and earnings growth rates for the current year are 5.8% and 13.8%, respectively, with a dividend yield of 0.87% [25]

Is a recession coming? Our economic outlook seems increasingly gloomy due to President Trump's trade policies. Though things might not go that far, it's still worth planning ahead.If a recession does hit, it might also affect the stock market, and different companies and sectors will perform differently. Let's consider two stocks that should handle recessions better than most and are worth investing in for the long haul: Vertex Pharmaceuticals (VRTX -2.01%) and HCA Healthcare (HCA -4.78%).1. Vertex Pharmace ...