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]

HCA Healthcare, Inc. (HCA) reported third-quarter 2024 adjusted earnings per share (EPS) of $5.05, which beat the Zacks Consensus Estimate by 1.6%. The bottom line improved 29.2% year over year. Revenues amounted to $17.5 billion, which improved 7.9% year over year in the quarter under review. However, the top line missed the consensus mark by a whisker. The third-quarter earnings benefited from higher admissions and a higher number of inpatient and same-facility emergency room visits, which contributed sub ...

Core Insights - HCA Healthcare reported worse-than-expected results for the third quarter, primarily due to the impact of recent hurricanes, leading to a significant drop in share price by approximately 10% [1][2] - The company experienced a third-quarter earnings per share (EPS) of $4.88, with revenue increasing by 8% to $17.49 billion, both figures falling short of analyst expectations [1] - HCA estimated additional expenses and revenue losses of $50 million, or $0.15 per diluted share, related to Hurricane Helene's impact on facilities in Florida, Georgia, and North Carolina [1] Financial Impact - For the current quarter, HCA anticipates ongoing additional expenses and revenue losses between $200 million to $300 million, translating to $0.60 to $0.90 per share, due to the effects of Hurricanes Helene and Milton [2] - The company expects that the consequences of Hurricane Helene will continue to affect its North Carolina operations into 2025, but believes these impacts will be manageable [2] - Despite the recent declines, HCA Healthcare shares have increased by one-third in value over the year [2]

For the quarter ended September 2024, HCA Healthcare (HCA) reported revenue of $17.49 billion, up 7.9% over the same period last year. EPS came in at $5.05, compared to $3.91 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $17.49 billion, representing a surprise of -0.04%. The company delivered an EPS surprise of +1.61%, with the consensus EPS estimate being $4.97. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Company Performance - HCA Healthcare reported quarterly earnings of $5.05 per share, exceeding the Zacks Consensus Estimate of $4.97 per share, and up from $3.91 per share a year ago, representing an earnings surprise of 1.61% [1] - The company posted revenues of $17.49 billion for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.04%, compared to $16.21 billion in the same quarter last year [1] - Over the last four quarters, HCA has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1] Stock Performance - HCA shares have increased approximately 47.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 21.8% [2] - The current consensus EPS estimate for the upcoming quarter is $6.62 on revenues of $18.45 billion, and for the current fiscal year, it is $22.48 on revenues of $70.77 billion [4] Industry Outlook - The Medical - Hospital industry, to which HCA belongs, is currently ranked in the top 4% of over 250 Zacks industries, indicating a favorable outlook [5] - The performance of HCA's stock may also be influenced by the overall industry outlook, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5]

MOUNTAIN VIEW, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Commure has been selected by HCA Healthcare, Inc., one of the nation’s leading providers of healthcare services, as the exclusive partner to develop and deploy an ambient AI platform across its network of healthcare professionals. This partnership, following Commure’s acquisition of ambient AI pioneer Augmedix, marks a significant step forward in efforts to integrate AI into healthcare and transform the way patient visits are conducted and documented ...

HCA Healthcare, Inc. (HCA) is scheduled to report third-quarter 2024 results on Oct. 25, before the opening bell. The Zacks Consensus Estimate for third-quarter earnings per share of $4.97 indicates a 27.1% increase from the prior-year figure of $3.91.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The earnings estimate has witnessed upward revisions over the past 60 days. The consensus estimate for third-quarter revenues of $17.5 billion indicates 7.9% growth from the year-ago repo ...