Should You Buy, Hold or Sell HCA Healthcare Stock After Q3 Earnings?

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]