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HCA Healthcare (HCA) Q2 Earnings and Revenues Lag Estimates

Zacks Equity Research

HCA Healthcare, Inc. HCA reported second-quarter 2019 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.

Quarterly Details

HCA Healthcare generated revenues of $12.6 billion, missing the Zacks Consensus Estimate by 0.2%. However, the same was up 9.3% year over year on the back of higher admissions.

Same facility admissions and equivalent admissions were up 2.1% and 2.6%, respectively, in the quarter under review. Same facility revenue per equivalent admission grew 1.7% year over year. Same facility inpatient surgeries and same facility outpatient surgeries dipped 0.1% and were up 0.6%, respectively. Same facility revenue per equivalent admission inched up 1.7% from the prior-year quarter.

Expenses increased nearly 10.6% year over year to $10.3 billion.

Adjusted EBITDA totaled $2.2 billion, up 3% year over year.

As of Jun 30, 2019, HCA Healthcare operated 184 hospitals and around 2000 sites of care including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics.

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

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

Financial Update

As of Jun 30, 2019, the company had cash and cash equivalents of about $2.43 billion, total debt of $20.7 billion and total assets of $45.5 billion, up 384%, down 164% and up 16%, respectively, from the levels at 2018 end.
During the reported quarter, capital expenditures totaled $964 million excluding acquisitions.

In the second quarter, cash flow from operations totaled $1.9 billion, up 26.2% year over year.

Share Repurchase and Dividend Update

In the second quarter of 2019, the company repurchased shares worth $242 million. HCA Healthcare has $1.75 billion shares left under its current share repurchase authorization as of Jun 30, 2019.

Moreover, its board announced a quarterly cash dividend of 40 cents per share on its common stock, payable Sep 30, 2019 to shareholders of record on Sep 3, 2019.

Guidance for 2019

The company expects full-year revenues to be in the $50.5-$51.5 billion band. Adjusted EBITDA is projected between $9.60 and $9.85 billion, narrowed from the prior projection of 9.45-$9.85 billion. EPS of the company is expected between $10.25 and $10.65, up from the prior projection of $9.80-$10.40 per share. Capital expenditures are anticipated to be around $3.7 billion.

Zacks Rank

HCA Healthcare carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Releases From the Medical Sector

Among other players from the medical sector having reported second-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Anthem Inc. ANTM and Centene Corporation CNC outpaced the respective Zacks Consensus Estimate.

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