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HCA Healthcare Misses EPS, Revenue Up
HCAHCA(US:HCA) The Motley Fool·2025-01-24 15:58

Core Viewpoint - HCA Healthcare reported strong revenue growth in Q4 2024 but missed earnings per share estimates due to the impact of hurricanes on operations [2][6]. Financial Performance - Revenue for Q4 2024 was $18.285 billion, exceeding analyst expectations of $18.234 billion, representing a year-over-year increase of 5.7% from $17.303 billion in Q4 2023 [3][6]. - Diluted earnings per share (EPS) were $5.63, falling short of the expected $6.13, and down 5.1% from $5.93 in Q4 2023 [3][6]. - Adjusted EBITDA for the quarter was $3.712 billion, reflecting a 2.6% increase from $3.618 billion in the previous year [3]. - Net income decreased by 10.5% to $1.438 billion compared to $1.607 billion in Q4 2023 [3]. Operational Highlights - Same-facility admissions increased by 3.0%, and inpatient surgeries grew by 2.8%, indicating strong demand for healthcare services despite external challenges [7]. - Emergency room visits rose by 2.4%, while outpatient surgeries saw a decline of 1.3% [7]. - The company faced revenue losses of approximately $200 million due to Hurricanes Helene and Milton, which significantly impacted operations in North Carolina and Florida [6]. Cash Flow and Share Repurchase - Operating cash flow was reported at $2.559 billion, demonstrating the company's strong cash generation capabilities [8]. - The company continued its share repurchase strategy, buying back 4.739 million shares for $1.7 billion [8]. Future Outlook - For 2025, HCA Healthcare projects revenue between $72.8 billion and $75.8 billion, with EPS expected to range from $24.05 to $25.85, indicating anticipated stability [9]. - Key strategies include investments in AI and digital technologies to enhance operational efficiency and patient care [9]. - The company aims to expand infrastructure with new inpatient and outpatient facilities while refining operational practices to adapt to changing healthcare regulations [10].