Yahoo Finance HCA Healthcare, Inc. Just Released Its Annual Results And Analysts Are Updating Their Estimates
The yearly results for HCA Healthcare, Inc. (NYSE:HCA) were released last week, making it a good time to revisit its performance. HCA Healthcare reported in line with analyst predictions, delivering revenues of US$51b and statutory earnings per share of US$10.07, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
See our latest analysis for HCA Healthcare
Taking into account the latest results, the latest consensus from HCA Healthcare's 21 analysts is for revenues of US$54.4b in 2020, which would reflect a modest 6.0% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to swell 16% to US$11.69. Yet prior to the latest earnings, analysts had been forecasting revenues of US$53.9b and earnings per share (EPS) of US$11.64 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$169, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on HCA Healthcare, with the most bullish analyst valuing it at US$186 and the most bearish at US$141 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Next year brings more of the same, according to analysts, with revenue forecast to grow 6.0%, in line with its 6.1% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% next year. So although HCA Healthcare is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for HCA Healthcare going out to 2023, and you can see them free on our platform here..
You can also see whether HCA Healthcare is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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