HCA(US:HCA) ZACKSยท2024-10-25 17:26Core Viewpoint - HCA Healthcare, Inc. reported strong third-quarter 2024 results with adjusted EPS of $5.05, exceeding estimates by 1.6% and showing a year-over-year increase of 29.2% [1] - Revenues reached $17.5 billion, a 7.9% year-over-year growth, although slightly missing consensus expectations [1] Quarterly Details - Same-facility equivalent admissions rose by 4.5% year over year, surpassing consensus estimates by 1.3%, while same-facility admissions also increased by 4.5% but missed estimates [2] - Same-facility revenue per equivalent admission increased by 2.5% year over year, exceeding consensus by 0.7% [2] - Same-facility inpatient surgeries grew by 1.6% year over year but fell short of the 2.2% growth estimate, while outpatient surgeries declined by 2% [2] - Emergency room visits increased by 4.6% year over year but missed the growth estimate of 4.9% [2] - Operating expenses, including salaries and benefits, totaled $14.2 billion, a 6.6% increase year over year, aligning with estimates [2] - Adjusted EBITDA improved by 13.4% year over year to $3.3 billion [2] Financial Update - As of September 30, 2024, HCA Healthcare had cash and cash equivalents of $2.9 billion, significantly up from $935 million at the end of 2023 [4] - Total assets increased to $59.5 billion from $56.2 billion at the end of 2023, while long-term debt rose to $38.3 billion from $37.2 billion [4] - Capital expenditures were reported at $1.19 billion, excluding acquisitions [4] Cash Flows - The company generated $3.5 billion in cash from operations in the third quarter, marking a 41.8% year-over-year increase [5] Capital Deployment Update - HCA repurchased shares worth $1.8 billion in the third quarter, with a remaining buyback capacity of $2.4 billion as of September 30, 2024 [6] Dividend Declaration - The board declared a quarterly cash dividend of 66 cents per share, payable on December 27, 2024, to shareholders of record as of December 13 [7] Fourth-Quarter Hurricane Impact - The company anticipates expenses and revenue losses from Hurricane Helene and Milton to be between $200 million and $300 million, equating to 60-90 cents per share in the fourth quarter [8] 2024 Outlook - Annual revenues are projected to be between $69.8 billion and $71.8 billion, indicating an 8.9% rise from 2023 [9] - Adjusted EBITDA is expected to range from $13.8 billion to $14.3 billion, suggesting a 10.2% growth from 2023 [9] - Net income is anticipated to be between $5.7 billion and $6 billion, reflecting an 11.6% increase from 2023 [9] - EPS is forecasted to be in the range of $21.60 to $22.80, implying a 17% rise from 2023 [9] - Capital expenditures, excluding acquisitions, are expected to be around $5 billion [9] 2025 Outlook - HCA's adjusted EBITDA and diluted EPS growth in 2025 are projected to be near or slightly above the upper end of its long-term growth targets of 4-6% and 8-12%, respectively [10] Zacks Rank - HCA Healthcare currently holds a Zacks Rank 2 (Buy) [11]