HCA Beats Q2 Earnings on Higher Admissions, Ups '25 EPS View

Core Insights - HCA Healthcare, Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of $6.84, exceeding the Zacks Consensus Estimate by 10.5% and showing a year-over-year improvement of 24.4% [1][9] - Revenues reached $18.6 billion, reflecting a 6.4% year-over-year increase and surpassing the consensus mark by 0.7% [1][9] Financial Performance - The quarterly results were supported by increased patient volumes, higher same-facility revenue per equivalent admission, and a rise in emergency room visits [2] - Same-facility equivalent admissions grew by 1.7% year over year, while same-facility admissions increased by 1.8%, both below growth estimates of 3.8% and 4% respectively [3] - Same-facility revenue per equivalent admission rose by 4% year over year, exceeding the growth estimate of 3.2% [3] - Adjusted EBITDA improved by 8.4% year over year to $3.8 billion, beating the estimate of $3.6 billion [5] Cost and Expenses - Salaries and benefits, supplies, and other operating expenses totaled $14.78 billion, increasing by 6% year over year but lower than the estimate of $14.84 billion [4] - Same-facility inpatient surgeries decreased by 0.3% year over year, missing the growth estimate of 1.5%, while same-facility outpatient surgeries fell by 0.6% [4] Cash Flow and Capital Management - HCA generated $5.9 billion in cash from operations in the first half of 2025, a 32% increase from the prior-year period [8] - The company repurchased $2.5 billion in shares during the quarter and had a remaining capacity of $5.8 billion under its buyback authorization [10] Guidance and Outlook - HCA revised its 2025 revenue guidance to between $74 billion and $76 billion, up from the previous range of $72.8 billion to $75.8 billion, indicating a 6.2% rise from 2024 [11] - Adjusted EBITDA is now expected to be in the range of $14.7 billion to $15.3 billion, higher than the earlier forecast [12] - EPS is projected to be in the $25.5 to $27 range for 2025, an increase from the previous estimate [13]