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HCA Healthcare (HCA) to Post Q3 Earnings: What to Expect

Zacks Equity Research

HCA Healthcare, Inc. HCA is scheduled to release third-quarter 2019 results on Oct 29.

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $2.14, suggesting a 1% dip from the year-ago reported figure.

In the second quarter, HCA Healthcare reported adjusted earnings of $2.21 per share, missing the Zacks Consensus Estimate by 11.2%. Moreover, the bottom line declined 3.5% year over year, mainly due to higher expenses.

Let’s see how things are shaping up prior to the announcement.

The company’s third-quarter results are likely to reflect higher salaries and benefits, supplies plus other operating costs. Higher expenses might have weighed on the company’s margins.

The company’s leverage might have also remained at elevated levels as it incurs debt to finance its acquisitions.

However, this downside is expected to have been partially offset by increased admissions, licensed beds, number of hospitals, etc., which in turn, might have led to improved revenues. The Zacks Consensus Estimate for the licensed number of beds is pegged at 48.6 million, implying a 3.1% improvement from the prior-year reported figure.

The Zacks Consensus Estimate for third-quarter admissions and equivalent admissions indicates respective growth of 7.2% and 6.2% from the year-ago reported numbers, attributable to the network expansion initiatives taken by HCA Healthcare.

The Zacks Consensus Estimate for licensed beds also hints at a 3.2% rise from the year-earlier reported figure. Licensed beds of the company are likely to have expanded on the back of higher number of hospitals. The Zacks Consensus Estimate for revenues stands at $12.5 billion, implying 9.2% growth from the prior-year reported number.

In order to enhance shareholder value, the company might have continued with share buybacks to further favor its bottom line in the upcoming quarterly release.

What the Quantitative Model States

Our proven model does not conclusively predict an earnings beat for HCA Healthcare this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: HCA Healthcare has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.14.  You can see the complete list of today’s Zacks #1 Rank stocks here.

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote

Zacks Rank: HCA Healthcare carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult for the stock this time around.

Stocks to Consider

Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:

Mednax, Inc MD is set to report third-quarter earnings on Nov 1. The stock has a Zacks Rank of 3 and an Earnings ESP of +1.10%.

AmerisourceBergen Corporation ABC is slated to announce third-quarter earnings on Nov 7. The stock has an Earnings ESP of +0.55% and is Zacks #3 Ranked.

Molina Healthcare, Inc MOH is set to report third-quarter earnings on Oct 29. The stock has a Zacks Rank of 1 and an Earnings ESP of +0.92%.

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