Core Insights - HCA Healthcare reported increased patient usage of its facilities, leading to sales and profits exceeding forecasts for the second quarter [1][4] - The company raised its full-year adjusted earnings per share (EPS) and revenue guidance [2][8] Financial Performance - HCA Healthcare's second-quarter adjusted EPS was $5.53, surpassing the analyst estimate of $4.86 [7] - Revenue increased by 10.3% to $17.49 billion, also above expectations [7] Patient Metrics - Same-facility admissions rose by 5.8% year-on-year [5] - Same-facility emergency room visits increased by 5.5% [5] - Same-facility inpatient surgeries grew by 2.6% [5] - However, same-facility outpatient surgeries declined by 2.1% [5] Guidance Update - The company raised its full-year adjusted EPS outlook to a range of $21.60 to $22.80, up from $19.70 to $21.20 [8] - Revenue guidance for the year was increased to $69.75 billion to $71.75 billion, up from $67.75 billion to $70.25 billion [8] Stock Performance - HCA Healthcare shares rose by 4.2% to $338.95 in late trading, reaching an intraday high of $348.00 [3] - The stock's record closing high was $343.29, recorded in late June [3]

Financial Data and Key Metrics Changes - The company reported a 28% increase in diluted earnings per share, reaching $5.50 compared to the previous year [68] - Same-facility revenue growth was 10%, driven by broad-based volume growth across markets and service lines [71] - Adjusted EBITDA for the quarter was $3.55 billion, representing a 16% increase year-over-year [76] Business Line Data and Key Metrics Changes - Inpatient admissions grew by 5.8%, equivalent admissions increased by 5.2%, and emergency room visits rose by 5.5% [69] - Inpatient surgeries were up 2.6%, while outpatient surgery cases decreased by 2%, primarily due to lower volumes in Medicaid and self-pay categories [69][70] - The payer mix improved, with commercial volumes representing 36.2% of equivalent admissions [70] Market Data and Key Metrics Changes - Exchange admissions accounted for approximately 7% of total admissions and ER visits, translating to about 9% of revenues [51] - Managed care volumes, including healthcare exchange volumes, were up 12.5% year-over-year [93] - Medicaid volumes were down 10% on equivalent admissions, largely due to Medicaid redeterminations [95] Company Strategy and Development Direction - The company is focused on investing in leadership development, technology, and expanding capacity to meet community needs [5][4] - A disciplined approach to operations and capital allocation is expected to continue producing positive outcomes for stakeholders [72] - The company plans to invest around $5.2 billion in capital expenditures, emphasizing network development and clinical technology [110] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued volume growth and strong demand for services, projecting a 4% to 6% growth range for the year [102] - The company anticipates a $100 million to $200 million tailwind from Medicaid supplemental payment programs, a shift from previous expectations of a headwind [105] - Management noted that the operational performance is solid, supported by strong volume and stable wage inflation [38][36] Other Important Information - The company repurchased $1.37 billion of its outstanding shares in the quarter and paid about $170 million in dividends [78] - Capital expenditures totaled $1.28 billion, with a debt-to-adjusted EBITDA leverage near the low end of the stated guidance range [78] Q&A Session Summary Question: Clarification on exchange admissions and outpatient surgeries trends - Exchange volumes were approximately 7% of admissions, with outpatient surgeries down about 2%, primarily due to trends in Medicaid and uninsured patients [7][8] Question: Update on core wage inflation and M&A impact - Wage inflation is expected to remain steady at 2.5% to 3%, with M&A contributing approximately $400 million in revenue but dilutive to earnings by about 1% [12][14] Question: Medicaid supplemental payments and margins evolution - Medicaid margins have improved but still fall short of covering the cost of care; sustainability of supplemental payments is expected [20][17] Question: CapEx outlook and share repurchase plans - The company maintains a CapEx outlook of $5.1 billion to $5.3 billion for 2024, with plans for $6 billion in share repurchases [22][28] Question: Trends in outpatient surgeries and potential impacts - Volume declines in outpatient surgeries are attributed to Medicaid and uninsured categories, with expectations for improvement in the second half of the year [54][55]

Core Viewpoint - HCA Healthcare has demonstrated strong financial performance, surpassing earnings and revenue expectations, indicating a positive outlook for the company and its stock [1][2][8]. Financial Performance - HCA reported quarterly earnings of $5.50 per share, exceeding the Zacks Consensus Estimate of $4.97 per share, and showing an increase from $4.29 per share a year ago [8]. - The company achieved revenues of $17.49 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.22% and reflecting a year-over-year increase from $15.86 billion [2]. - HCA has outperformed consensus revenue estimates four times over the last four quarters [2]. Stock Performance - HCA shares have increased approximately 20.2% since the beginning of the year, outperforming the S&P 500's gain of 16.7% [3]. - The current consensus EPS estimate for the upcoming quarter is $4.46 on revenues of $17.18 billion, and for the current fiscal year, it is $20.97 on revenues of $69.73 billion [5]. Earnings Outlook - The trend for earnings estimate revisions for HCA is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [12]. - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [10]. Industry Context - The Medical - Hospital industry, to which HCA belongs, is currently ranked in the top 5% of over 250 Zacks industries, indicating a strong industry outlook [13]. - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [4].

HCA Healthcare Second Quarter 2024 Earnings Release [Financial & Operating Highlights](index=1&type=section&id=Financial%20%26%20Operating%20Highlights) HCA Healthcare reported strong Q2 and H1 2024 financial and operational growth, raising full-year guidance [Second Quarter 2024 Performance](index=1&type=section&id=Second%20Quarter%202024%20Performance) Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $17.492 billion | $15.861 billion | +10.3% | | Net Income Attributable to HCA | $1.461 billion | $1.193 billion | +22.5% | | Diluted EPS | $5.53 | $4.29 | +28.9% | | Adjusted EBITDA | $3.550 billion | $3.056 billion | +16.2% | - Q2 2024 results included gains on sales of facilities of **$12 million**, or **$0.03 per diluted share**[3](index=3&type=chunk) Q2 2024 Same Facility Operating Metrics (YoY) | Metric | % Change | | :--- | :--- | | Admissions | +5.8% | | Equivalent Admissions | +5.2% | | Emergency Room Visits | +5.5% | | Inpatient Surgeries | +2.6% | | Outpatient Surgeries | -2.1% | | Revenue per Equivalent Admission | +4.4% | [Year-to-Date 2024 Performance](index=2&type=section&id=Year-to-Date%202024%20Performance) Six Months Ended June 30, 2024 Key Financials (vs. 2023) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $34.831 billion | $31.452 billion | +10.7% | | Net Income Attributable to HCA | $3.052 billion | $2.556 billion | +19.4% | | Diluted EPS | $11.47 | $9.14 | +25.5% | - Results for the first six months of 2024 include gains on sales of facilities of **$213 million ($0.61 per diluted share)**, compared to losses of **$14 million ($0.08 per diluted share)** in the same period of 2023[6](index=6&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Key Balance Sheet and Cash Flow Items (as of June 30, 2024) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $831 million | | Total Debt | $40.880 billion | | Total Assets | $57.379 billion | | Q2 2024 Capital Expenditures | $1.281 billion | | Q2 2024 Cash Flow from Operations | $1.971 billion | - Cash flows from operating activities decreased to **$1.971 billion** in Q2 2024 from **$2.475 billion** in Q2 2023[7](index=7&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) - The company repurchased **4.217 million shares** of its common stock for **$1.367 billion** during the second quarter of 2024[8](index=8&type=chunk) - As of June 30, 2024, HCA had **$4.228 billion** remaining under its share repurchase authorization[8](index=8&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.66 per share**, payable on September 30, 2024[9](index=9&type=chunk) [2024 Revised Guidance](index=3&type=section&id=2024%20Revised%20Guidance) HCA Healthcare raised its full-year 2024 guidance for key financial metrics, reflecting strong first-half performance Revised 2024 Full-Year Guidance | Metric | Previous Guidance | Revised Guidance | | :--- | :--- | :--- | | Revenues | $67.75 - $70.25 B | $69.75 - $71.75 B | | Net Income Attributable to HCA | $5.20 - $5.60 B | $5.675 - $5.975 B | | Adjusted EBITDA | $12.85 - $13.55 B | $13.75 - $14.25 B | | EPS (diluted) | $19.70 - $21.20 | $21.60 - $22.80 | - Capital expenditures for 2024, excluding acquisitions, are estimated to remain in the range of **$5.1 to $5.3 billion**[12](index=12&type=chunk) - The revised guidance is based on current expectations for patient volumes and payor mix, and excludes potential impacts from items like gains/losses on facility sales or legal costs[13](index=13&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 and H1 2024 [Condensed Consolidated Comprehensive Income Statements](index=6&type=section&id=Condensed%20Consolidated%20Comprehensive%20Income%20Statements) Q2 2024 Income Statement Highlights (vs Q2 2023) | Line Item | Q2 2024 ($M) | Q2 2023 ($M) | | :--- | :--- | :--- | | Revenues | 17,492 | 15,861 | | Salaries and benefits | 7,685 | 7,277 | | Income before income taxes | 2,237 | 1,809 | | Net Income Attributable to HCA | 1,461 | 1,193 | H1 2024 Income Statement Highlights (vs H1 2023) | Line Item | H1 2024 ($M) | H1 2023 ($M) | | :--- | :--- | :--- | | Revenues | 34,831 | 31,452 | | Salaries and benefits | 15,392 | 14,361 | | Income before income taxes | 4,484 | 3,731 | | Net Income Attributable to HCA | 3,052 | 2,556 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (as of June 30, 2024) | Account | June 30, 2024 ($M) | Dec 31, 2023 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 831 | 935 | | Total Assets | 57,379 | 56,211 | | Long-term debt (including current portion) | 40,880 | 39,593 | | Total Stockholders' Equity | 1,339 | 1,060 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | Net cash provided by operating activities | 4,440 | 4,278 | | Net cash used in investing activities | (2,235) | (2,408) | | Net cash used in financing activities | (2,309) | (1,923) | | Change in cash and cash equivalents | (104) | (46) | [Operating Statistics](index=10&type=section&id=Operating%20Statistics) Operating statistics for Q2 and H1 2024 show broad volume growth, with a slight decline in outpatient surgeries Q2 2024 Same Facility Key Metrics (% Change YoY) | Metric | % Change | | :--- | :--- | | Admissions | +5.8% | | Equivalent Admissions | +5.2% | | Revenue per Equivalent Admission | +4.4% | | Inpatient Surgery Cases | +2.6% | | Outpatient Surgery Cases | -2.1% | | Emergency Room Visits | +5.5% | H1 2024 Same Facility Key Metrics (% Change YoY) | Metric | % Change | | :--- | :--- | | Admissions | +6.0% | | Equivalent Admissions | +5.2% | | Revenue per Equivalent Admission | +3.9% | | Inpatient Surgery Cases | +2.2% | | Outpatient Surgery Cases | -2.1% | | Emergency Room Visits | +6.4% | - As of June 30, 2024, HCA operated **188 hospitals**, an increase from **182 in the prior year**[28](index=28&type=chunk) [Supplemental Non-GAAP Disclosures](index=11&type=section&id=Supplemental%20Non-GAAP%20Disclosures) This section reconciles non-GAAP financial measures, including Adjusted EBITDA, for historical and forecasted results [Reconciliation of Historical Results](index=11&type=section&id=Reconciliation%20of%20Historical%20Results) Q2 2024 Adjusted EBITDA Reconciliation | Line Item | Amount ($M) | | :--- | :--- | | Net Income Attributable to HCA | 1,461 | | Provision for income taxes | 547 | | Interest expense | 506 | | Depreciation and amortization | 819 | | Net income attributable to noncontrolling interests | 226 | | Losses (gains) on sales of facilities (net of tax) | (9) | | **Adjusted EBITDA** | **3,550** | - The Adjusted EBITDA margin for Q2 2024 was **20.3%**, an increase from **19.3%** in Q2 2023[31](index=31&type=chunk) [Reconciliation of 2024 Forecast](index=12&type=section&id=Reconciliation%20of%202024%20Forecast) 2024 Forecasted Adjusted EBITDA Reconciliation (Midpoint) | Line Item | Amount ($M) | | :--- | :--- | | Net Income Attributable to HCA | 5,825 | | Depreciation and amortization | 3,270 | | Interest expense | 2,080 | | Provision for income taxes | 1,905 | | Net income attributable to noncontrolling interests | 920 | | **Adjusted EBITDA** | **14,000** | - The company does not forecast certain items like gains/losses on facility sales or legal claim costs due to the inability to predict them with sufficient accuracy[39](index=39&type=chunk)

Company Overview - HCA Healthcare is one of 1025 individual stocks in the Medical sector, currently holding a Zacks Rank of 2 (Buy) [2][3] - Over the past 90 days, the Zacks Consensus Estimate for HCA's full-year earnings has increased by 1.9%, indicating improved analyst sentiment [4] Performance Analysis - HCA Healthcare has achieved a year-to-date return of approximately 19%, outperforming the average gain of 6% in the Medical group [4] - In the Medical - Hospital industry, HCA Healthcare is ranked 17 and has slightly underperformed its industry, which has gained an average of 19.8% this year [6] Comparison with Peers - AnaptysBio, Inc. has outperformed the Medical sector with a year-to-date return of 57.3% and also holds a Zacks Rank of 2 (Buy) [5] - The Medical - Biomedical and Genetics industry, to which AnaptysBio belongs, is currently ranked 71 and has seen a decline of 1.1% year to date [6] Investment Consideration - Investors interested in the Medical sector may want to monitor HCA Healthcare and AnaptysBio, Inc. for their strong performance [7]

The Zacks Consensus Estimate for second-quarter earnings per share of $4.97 indicates a 15.9% increase from the prior-year figure of $4.29. The estimate increased 6 cents in the past 30 days. The consensus estimate for second-quarter revenues of $17.1 billion indicates 7.9% growth from the year-ago reported figure. HCA Healthcare beat the consensus estimate for earnings in three of the prior four quarters, missing once, with the average being 5.6%. Earnings Whispers Earnings ESP: HCA Healthcare has an Earni ...

The market expects HCA Healthcare (HCA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. Zacks Consensus Estimate Estimate Revisions Trend Earnings Whisper A positive Earnings ESP is a strong predictor of an earnings be ...

These companies have what it takes to stand the test of time in a portfolio. 1. Vertex Pharmaceuticals The company has its sights set on the launch of several potential blockbusters before the end of the decade. These include a new triple-combination therapy for cystic fibrosis, which was just granted priority review by the U.S. Food and Drug Administration with a Prescription Drug User Fee Act (PDUFA) target action date of Jan. 2, 2025. No industry is totally impervious to market dynamics, but healthcare c ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider HCA Healthcare (HCA) . This company, which is in the Zacks Medical - Hospital industry, shows potential for another earnings beat. This hospital operator has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters ...

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperfor ...