Health Management Associates Inc. Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Wall St. Cheat Sheet

Health Management Associates Inc. reported net income above Wall Street’s expectations for the third quarter. Health Management Associates and its subsidiaries provide health care services to patients in owned and leased facilities located mainly in non-urban communities in the southeastern and southwestern United States.

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Health Management Associates Earnings Cheat Sheet for the Third Quarter

Results: Net income for the hospital rose to $43.7 million (17 cents per share) vs. $35.3 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 23.9% from the year earlier quarter.

Revenue: Rose 12% to $1.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HMA reported adjusted net income of 19 cents per share. By that measure, the company beat the mean estimate of 17 cents per share. Analysts were expecting revenue of $1.4 billion.

Quoting Management: “Continued adherence to our proven operating initiatives and disciplined cost controls generated another solid quarter of EPS growth in excess of 20%,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “We are pleased with the progress we are making in our emergency room operations, physician recruitment and market service development at both our same-hospital and recently acquired facilities, and we continue to attract considerable interest from hospitals seeking a partner to help navigate a turbulent operating environment while adhering to a patient-centered culture.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 22.6% and in the first quarter, the figure rose 18.3%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the second quarter and by one cent in the first quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 20 cents per share from 19 cents. For the fiscal year, the average estimate has moved up from 76 cents a share to 78 cents over the last ninety days.

Competitors to Watch: Community Health Systems , Universal Health Services, Inc. , Tenet Healthcare Corp. , HCA Holdings Inc , MedCath Corporation , SunLink Health Systems, Inc. , LifePoint Hospitals, Inc. , Dynacq Healthcare, Inc. , Select Medical Hldgs. Corp. , and HEALTHSOUTH Corp. .

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(Source: Xignite Financials)

 

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