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HCA Healthcare (HCA) Q3 Earnings Beat Estimates, Improve Y/Y

Zacks Equity Research

HCA Healthcare, Inc. HCA reported third-quarter 2019 adjusted earnings of $2.23 per share, surpassing the Zacks Consensus Estimate by 4.2%.

Moreover, the bottom line inched up nearly 3.2% year over year on the back of higher revenues.

The company’s net income per share of $1.76 in the quarter under review was down 18% year over rear. 

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

Quarterly Details

HCA Healthcare generated revenues of $12.7 billion, beating the Zacks Consensus Estimate by 1.6%. The reported figure was up 10.9% from the year-ago period.

Same facility equivalent admissions increased 4.2% year over year while same facility admissions rose 3.2%. Same facility revenue per equivalent admission also grew 2%.

Salaries and benefits, supplies and other operating expenses increased 11.2 % year over year to $10.4 billion.

Adjusted EBITDA totaled $2.3 billion, up 9% year over year.

As of Sep 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.

Financial Update

As of Sep 30, 2019, the company had cash and cash equivalents of about $559 million, total debt of $34.2 billion and total assets of $43.9 billion.

During the reported quarter, capital expenditures totaled $1.1 billion excluding acquisitions. Cash flows provided by operating activities were $2.1 billion, up 23.5% year over year.

Dividend and Share Repurchase Update

HCA Healthcare announced a quarterly cash dividend of 40 cents per share payable Dec 27 to stockholders of record at the close of business on Dec 2.
The company bought back shares worth $239 million in the third quarter and had shares worth $1.5 billion remaining under its current repurchase authorization as of Sep 30, 2019.

2019 Outlook

The company still expects its 2019 revenues in the band of$50.5-$51.5 billion. Adjusted EBITDA is tapered to a new range of $9.65-$9.85 billion from the earlier band of $9.60-$9.85 billion. Capital expenditures are anticipated to be around $3.8 billion. The company upped the lower end of its earlier EPS guidance from $10.25-$10.65 to $10.30-$10.65.

Zacks Rank

HCA Healthcare carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

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

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