HCA Healthcare's Q4 Earnings Beat Estimates on Strong Admissions

HCA Healthcare's Financial Performance - Adjusted EPS for Q4 2024 was $6.22, surpassing the Zacks Consensus Estimate by 4.2% and increasing 5.4% YoY [1] - Revenues rose 5.7% YoY to$ 18.3 billion, beating the consensus mark by 1.1% [2] - Full-year 2024 revenues increased 8.7% YoY to $70.6 billion, with adjusted EPS rising 15.5% YoY to$ 21.96 [11] - Adjusted EBITDA for 2024 improved 9.1% YoY to $13.9 billion [11] Operational Highlights - Same-facility equivalent admissions grew 3.1% YoY, while same-facility admissions increased 3% YoY in Q4 2024 [3] - Same-facility revenue per equivalent admission rose 2.9% YoY, exceeding the growth estimate of 2.7% [3] - Same-facility inpatient surgeries increased 2.8% YoY, outpacing the growth estimate of 2.1% [4] - Same-facility emergency room visits rose 2.4% YoY in Q4 2024 [4] Expenses and EBITDA - Salaries and benefits, supplies, and other operating expenses increased 6.3% YoY to$ 14.6 billion, higher than the estimate of $14.4 billion [4] - Adjusted EBITDA for Q4 2024 improved 2.6% YoY to$ 3.7 billion [4] Financial Position and Capital Deployment - Cash and cash equivalents at the end of Q4 2024 were $1.9 billion, more than double the 2023-end level [6] - Total assets increased 5.9% YoY to$ 59.5 billion [6] - Long-term debt rose 3.1% YoY to $38.3 billion [6] - Capital expenditures were$ 1.3 billion, excluding acquisitions [7] - Cash from operations in 2024 advanced 11.5% YoY to $10.5 billion [8] - HCA bought back shares worth$ 1.7 billion in Q4 2024 and approved a new $10 billion share repurchase program [9] - Quarterly cash dividend increased 9.1% to 72 cents per share, payable on March 31, 2025 [10] 2025 Guidance - Annual revenues for 2025 are expected to be between$ 72.8 billion and $75.8 billion, indicating a 5.2% rise at the midpoint [12] - Adjusted EBITDA for 2025 is projected to be in the range of$ 14.3- $15.1 billion, with a midpoint growth of 5.9% [12] - Net income attributable to HCA Healthcare is expected to be between$ 5.85 billion and $6.29 billion [12] - EPS is forecasted to be in the$ 24.05- $25.85 range, implying a 13.6% rise at the midpoint [13] - Capital expenditures, excluding acquisitions, are expected to be within$ 5- $5.2 billion [13] Industry Updates - UnitedHealth Group reported Q4 2024 adjusted EPS of$ 6.81, beating the consensus estimate by 1.5% and increasing 10.6% YoY [16] - UnitedHealth's revenues rose 6.8% YoY to $100.8 billion, though it missed the consensus mark by 1.4% [16] - Elevance Health reported Q4 2024 adjusted EPS of$ 3.84, surpassing the consensus estimate by 1.1%, but declining 31.7% YoY [18] - Elevance Health's operating revenues increased 6% YoY to $45 billion, slightly beating the consensus mark [18] Upcoming Earnings - Merit Medical Systems is scheduled to report Q4 2024 earnings on Feb 25, with a Zacks Consensus Estimate of 83 cents per share, indicating a 2.5% rise YoY [21][22]