Financial Data and Key Metrics Changes - The company reported a 42% growth in diluted earnings per share as adjusted compared to the previous year [5] - Revenue increased by 9.6%, driven by broad-based volume growth, improved payer mix, and additional revenue from Medicaid supplemental programs [5][10] - Adjusted EBITDA increased by approximately $240 million due to Medicaid state supplemental payments [12][15] Business Line Data and Key Metrics Changes - Same-facility equivalent admissions increased by 2.4% year-over-year [10] - Same-facility inpatient surgical volume grew by 1.4%, while outpatient surgical volume increased by 1.1% [10] - Same-facility visits rose by 1.3% compared to the prior year [10] Market Data and Key Metrics Changes - Commercial and Medicare visits combined increased by 4.1%, while Medicaid and self-pay visits declined [10] - Same-facility total commercial equivalent admissions rose by 3.7%, with exchanges growing by 8% [11] - Medicare admissions increased by 3.4%, and Medicaid admissions grew by 1.4% [11][72] Company Strategy and Development Direction - The company is focused on enhancing care through increased access, advanced digital tools, and staff training [6][8] - There is an emphasis on improving operational efficiency and service offerings through strategic investments [8] - The company plans to maintain high performance levels and has strengthened its management team and systems [8] Management's Comments on Operating Environment and Future Outlook - Management expects solid demand for healthcare services, with volumes anticipated to grow within a long-term range of 2%-3% [7] - Operating costs are expected to remain stable, with some pressures in certain areas [7] - The company is well-positioned to sustain performance levels and navigate future challenges [8][99] Other Important Information - Cash flow from operations was $4.4 billion, with $1.3 billion in capital expenditures and $2.5 billion in share repurchases [14] - The company updated its full-year guidance, expecting revenues between $75 billion and $76.5 billion and adjusted EBITDA between $15.25 billion and $15.65 billion [15] Q&A Session Summary Question: Can you remind us what states are still pending for grandfathered programs? - Management mentioned Florida, Georgia, and Virginia as states with pending applications, but they do not expect approvals during the current shutdown [20][22] Question: Are you seeing early scheduling for elective surgeries? - Management noted that it is too early to size the potential impact of upcoming enrollment periods and that they are prepared to assist patients with coverage navigation [26][27] Question: Can you provide a bridge from Q3 into Q4 guidance? - Management indicated that the implied growth rate for Q4 is expected to be in the high single-digits, considering hurricane impacts and state supplemental payment declines [32] Question: How much did you recognize in the fourth quarter for Tennessee specifically? - Tennessee was the largest driver of net benefit in Q3, with Texas and Kansas also contributing to the overall increase [36][38] Question: How do you expect professional fees to trend going into 2026? - Professional fees increased by 11% year-over-year, with expectations for continued financial improvement as integration efforts mature [82][84] Question: How is the company preparing for potential volume growth in Q4? - Management expressed confidence in their capacity to handle increased demand, citing improved staffing and operational initiatives [88][90] Question: What is the outlook for hurricane-impacted facilities? - Management expects to recover approximately $100 million of the $250 million headwind from hurricanes in 2025, with ongoing challenges in North Carolina [95][96] Question: What gives you confidence in achieving long-term volume growth? - The company has experienced 18 consecutive quarters of volume growth and anticipates continued demand driven by capital investments and outpatient facility expansions [99]

Financial Data and Key Metrics Changes - The company reported a 42% growth in diluted earnings per share as adjusted compared to the previous year [5] - Revenue increased by 9.6%, driven by broad-based volume growth, improved payer mix, and additional revenue from Medicaid supplemental programs [5][11] - Adjusted EBITDA margin improved due to strong performance in labor and supplies management [13][15] - Cash flow from operations was $4.4 billion, with $1.3 billion in capital expenditures and $2.5 billion in share repurchases [16] Business Line Data and Key Metrics Changes - Same-facility equivalent admissions increased by 2.4% year-over-year [11] - Same-facility inpatient surgical volume grew by 1.4%, while outpatient surgical volume increased by 1.1% [11] - Same-facility visits rose by 1.3%, with commercial and Medicare visits combined increasing by 4.1% [11][12] - Medicaid and self-pay visits both declined compared to the prior year [11] Market Data and Key Metrics Changes - The company experienced solid demand across its markets for healthcare services, expecting volumes to remain within a long-term growth range of 2 to 3% [8] - The respiratory season started slowly, impacting year-over-year growth rates in admissions and visits [11] Company Strategy and Development Direction - The company is focused on enhancing care for patients by increasing access, investing in digital tools, and training staff [7] - The management team has been restructured to improve enterprise capabilities and operational performance [9] - The company is advocating for the extension of enhanced premium tax credits for health insurance coverage [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining high levels of performance, citing strong cash flow and a robust balance sheet [9] - The company anticipates stable operating costs and solid demand for healthcare services in the upcoming year [8] - Preliminary views for 2026 are cautious due to the fluid nature of federal policy [8][9] Other Important Information - The company raised its full-year guidance, expecting revenues between $75 billion and $76.5 billion and adjusted EBITDA between $15.25 billion and $15.65 billion [17] - The net benefit from Medicaid state supplemental payments is expected to be $250 million to $350 million favorable for the full year 2025 compared to 2024 [17][18] Q&A Session Summary Question: Can you remind us what states are still pending for grandfathered programs? - Management mentioned Florida, Georgia, and Virginia as states with pending applications, but they do not expect approvals during the current shutdown [21][23] Question: Are you seeing early scheduling for elective surgeries? - Management noted that it is too early to size the potential impact of upcoming enrollment periods and special enrollment provisions [27][28] Question: Can you provide a bridge from Q3 into Q4 guidance? - Management indicated that hurricane impacts and declines in state supplemental payments will affect Q4 growth rates, which are expected to be in the high single-digits range [34] Question: How much of the supplemental payment benefit is included in guidance for Tennessee and Texas? - Tennessee was the largest driver of net benefit in Q3, while Texas had a minor impact due to late approval [38] Question: What is the outlook for professional fees and their impact on EBITDA? - Professional fees increased by 11% year-over-year, primarily related to anesthesia and radiology [84] Question: How is the company managing capacity for incremental volumes? - Management stated there are no significant capacity constraints and that they have improved staffing to meet expected demand [90][91] Question: How should we think about the hurricane-impacted facilities' recovery? - Management expects to recover approximately $100 million of the $250 million headwind from hurricanes in 2025 [97] Question: What gives you confidence in achieving long-term volume growth? - Management highlighted 18 consecutive quarters of volume growth and the addition of more outpatient facilities as key factors [101]

Financial Data and Key Metrics Changes - The company reported a 42% growth in diluted earnings per share as adjusted compared to the previous year [4] - Revenue increased by 9.6%, driven by broad-based volume growth, improved payer mix, and additional revenue from Medicaid supplemental programs [4][10] - Adjusted EBITDA increased significantly, with a net benefit of approximately $240 million from Medicaid supplemental payment programs [11][14] Business Line Data and Key Metrics Changes - Same-facility equivalent admissions increased by 2.4% year-over-year [9] - Surgical volume growth improved, with same-facility inpatient surgical volume up 1.4% and outpatient surgical volume up 1.1% [9] - Same-facility visits increased by 1.3%, with commercial and Medicare visits combined increasing by 4.1% [9][10] Market Data and Key Metrics Changes - The payer mix showed a 3.7% increase in same-facility total commercial equivalent admissions, with exchanges growing by 8% [10] - Medicare admissions increased by 3.4%, while Medicaid admissions grew by 1.4% [10][66] - Self-pay visits declined by 6%, indicating a shift in the payer mix towards more commercial and Medicare patients [9][67] Company Strategy and Development Direction - The company is focused on enhancing care through increased access, investment in digital tools, and staff training [5][7] - There is an emphasis on improving operational efficiency and service offerings, with a strong belief in sustaining high performance levels in the future [7][8] - The company is preparing for potential changes in federal policies and is advocating for the extension of premium tax credits [6][5] Management's Comments on Operating Environment and Future Outlook - Management expects solid demand for healthcare services to continue, with volumes projected to grow within a long-term range of 2 to 3% [6] - Operating costs are anticipated to remain stable, with some pressures in certain areas, but the resiliency plan is expected to provide relief [6][12] - The company is well-positioned to sustain performance levels, supported by a strong balance sheet and increased cash flow [8][13] Other Important Information - The company updated its full-year guidance, expecting revenues between $75 billion and $76.5 billion and net income between $6.50 billion and $6.72 billion [14] - Capital expenditures are projected to be approximately $5 billion, with a focus on long-term value creation [13][14] Q&A Session Summary Question: Can you remind us what states are still pending for grandfathered programs? - Management mentioned several states, including Florida, Georgia, and Virginia, are under review, but no approvals are expected during the shutdown [20][21] Question: Are you seeing early scheduling for elective surgeries? - Management noted that it is difficult to size the potential impact of upcoming enrollment periods and special enrollment provisions until closer to the fourth quarter call [25] Question: Can you provide color on the guidance range for the fourth quarter? - Management indicated that the implied growth rate for the fourth quarter is expected to be in the high single-digits range, around 7% [30] Question: How much in supplemental payments is included in guidance for Tennessee and Texas? - Tennessee was the largest driver of net benefit in the third quarter, while Texas had a minor impact due to its late approval [33][34] Question: How are you managing professional fees and their impact on EBITDA? - Professional fees increased by 11% year-over-year, primarily related to anesthesia and radiology, but management expects continued financial improvement moving into 2026 [74][77]

HCA Healthcare (NYSE:HCA) Q3 2025 Earnings Call October 24, 2025 10:00 AM ET Speaker0Hello, and welcome to the HCA Healthcare Third Quarter twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Vice President of Investor Relations, Mr. Frank Morgan. Please go ahead, sir.Speaker1Good morning, and welcome to everyone on today's call. With me this morning is our CEO, Sam Hazen and CFO, Mike Marks. ...

Core Insights - HCA Healthcare reported a revenue of $19.16 billion for the quarter ended September 2025, reflecting a year-over-year increase of 9.6% [1] - The earnings per share (EPS) for the quarter was $6.96, up from $5.05 in the same quarter last year, indicating a significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $18.5 billion by 3.55%, and the EPS surpassed the consensus estimate of $5.65 by 23.19% [1] Financial Performance Metrics - Revenue per Equivalent Admission was $18,446, exceeding the average estimate of $17,966.71 [4] - Equivalent Admissions reached 1.04 billion, slightly above the estimated 1.03 billion [4] - Total Admissions were reported at 577.8 million, compared to the estimated 575.37 million [4] - Patient Days totaled 2,692.51, which was below the average estimate of 2,718.89 [4] - The Average Length of Stay remained consistent at 5 days, matching the estimate [4] - The number of hospitals remained stable at 191, in line with estimates [4] - Inpatient Revenue per Admission was $19,908, surpassing the average estimate of $19,196.22 [4] - Equivalent Patient Days were reported at 4.84 million, slightly below the average estimate of 4.86 million [4] - Licensed Beds at the end of the period were 50,577, exceeding the average estimate of 50,346 [4] - The number of freestanding outpatient surgery centers was 123, slightly below the average estimate of 124 [4] Stock Performance - HCA shares have returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - HCA Healthcare Inc. reported strong third-quarter 2025 financial results, exceeding analyst expectations in both revenue and earnings [1][2]. Financial Performance - Total revenues reached $19.16 billion, marking a 9.6% year-over-year increase and surpassing the consensus estimate of $18.57 billion [2]. - Adjusted earnings were reported at $6.96, up from $4.90 a year ago, exceeding the consensus of $5.72 [2]. - Adjusted EBITDA totaled $3.87 billion, compared to $3.267 billion in the same quarter last year [4]. - Cash flows from operating activities amounted to $4.42 billion, an increase from $3.515 billion in Q3 2024 [4]. Operational Metrics - Same-facility admissions increased by 2.1%, while same-facility equivalent admissions rose by 2.4% [3]. - Emergency room visits at same facilities grew by 1.3%, inpatient surgeries increased by 1.4%, and outpatient surgeries rose by 1.1% [3]. - Same-facility revenue per equivalent admission grew by 6.6% [3]. Guidance and Outlook - HCA Healthcare raised its fiscal year 2025 guidance for adjusted earnings from $25.50 to $27 to a new range of $27 to $28, exceeding the consensus of $26.33 [5]. - The sales guidance for 2025 was revised from $74 billion to $76 billion to a new range of $75 billion to $76.5 billion, compared to the consensus of $75.02 billion [5]. - The forecast for 2025 net income was updated to a range of $6.495 billion to $6.715 billion, up from the previous guidance of $6.11 billion to $6.48 billion [5]. - Adjusted EBITDA guidance was raised from a range of $14.70 billion to $15.30 billion to a new range of $15.25 billion to $15.65 billion [6]. Stock Performance - HCA Healthcare shares increased by 3.83% to $457.00, reaching a new 52-week high [6].

Core Insights - HCA Healthcare reported quarterly earnings of $6.96 per share, exceeding the Zacks Consensus Estimate of $5.65 per share, and up from $5.05 per share a year ago, representing an earnings surprise of +23.19% [1] - The company achieved revenues of $19.16 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.55%, and an increase from $17.49 billion year-over-year [2] - HCA shares have increased approximately 46.7% year-to-date, significantly outperforming the S&P 500's gain of 14.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.39 on revenues of $19.41 billion, and for the current fiscal year, it is $26.17 on revenues of $74.86 billion [7] - The estimate revisions trend for HCA was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which HCA belongs, is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Insights - HCA Healthcare raised its full-year outlook following an increase in profit and revenue for the third quarter, driven by growth in same-facility admissions [1] Financial Performance - The company reported higher profit and revenue in the third quarter compared to previous periods [1] - Same-facility admissions experienced growth, contributing to the improved financial results [1] Outlook - HCA Healthcare's revised full-year outlook reflects confidence in continued performance and operational strength [1]

Financial Performance - Revenues for Q3 2025 increased by 9.6% to $19.161 billion compared to Q3 2024[3] - Net income attributable to HCA Healthcare, Inc. rose by 29.4% to $1.643 billion, or $6.96 per diluted share[3] - Adjusted EBITDA for Q3 2025 increased by 18.5% to $3.870 billion[2] - Revenues for Q3 2025 reached $19,161 million, a 9.6% increase from $17,487 million in Q3 2024[19] - Net income attributable to HCA Healthcare, Inc. for Q3 2025 was $1,643 million, up 29.3% from $1,270 million in Q3 2024[19] - Diluted earnings per share for Q3 2025 increased to $6.96, compared to $4.88 in Q3 2024, representing a 42.7% growth[19] - For the nine months ended September 30, 2025, revenues totaled $56,087 million, a 7.3% increase from $52,318 million in the same period of 2024[20] - Net income for the nine months ended September 30, 2025, was $5,619 million, reflecting a 13.0% increase from $4,971 million in 2024[23] - HCA Healthcare, Inc. experienced a comprehensive income of $4,976 million for the nine months ended September 30, 2025, up from $4,369 million in 2024[20] Cash Flow and Assets - Cash flows from operating activities totaled $4.416 billion, up from $3.515 billion in Q3 2024[7] - Cash and cash equivalents at the end of Q3 2025 were $997 million, down from $2,888 million at the end of Q3 2024[23] - Total assets as of September 30, 2025, amounted to $59,747 million, compared to $59,513 million at the end of 2024[22] - The company reported a net cash provided by operating activities of $10,277 million for the nine months ended September 30, 2025, compared to $7,955 million in 2024[23] Guidance and Forecast - The company updated its 2025 revenue guidance to a range of $75.000 to $76.500 billion[12] - The revised net income guidance for 2025 is now $6.495 to $6.715 billion[12] - For the year ending December 31, 2025, the company forecasts revenues between $75,000 million and $76,500 million[32] - The forecasted net income attributable to HCA Healthcare, Inc. for 2025 is projected to be between $6,495 million and $6,715 million[32] Operational Metrics - Same facility admissions increased by 2.1% and same facility equivalent admissions increased by 2.4% in Q3 2025[5] - Total admissions increased by 2.8% to 577,804 in Q3 2025 from 562,100 in Q3 2024[25] - Revenue per equivalent admission rose to $18,446 in Q3 2025, a 6.1% increase from $17,381 in Q3 2024[25] - The average length of stay decreased to 4.660 days in Q3 2025 from 4.787 days in Q3 2024[25] - The number of hospitals increased to 191 in Q3 2025, up from 187 in Q3 2024[25] Shareholder Returns - The company repurchased 6.514 million shares at a cost of $2.498 billion during Q3 2025[8] - A quarterly cash dividend of $0.72 per share was declared, payable on December 29, 2025[9] Debt and Capital Expenditures - Long-term debt, less debt issuance costs, was $38,401 million as of September 30, 2025, slightly down from $38,333 million at the end of 2024[22] - Capital expenditures for 2025, excluding acquisitions, are estimated to be approximately $5.0 billion[12] - Adjusted EBITDA margin improved to 20.2% in Q3 2025 from 18.7% in Q3 2024[28]

Core Insights - HCA Healthcare exceeded Wall Street profit estimates for the third quarter, driven by strong demand for its medical care services [1] Financial Performance - The company reported a profit that surpassed analysts' expectations, indicating robust operational performance in the healthcare sector [1]