Yahoo Finance HCA Healthcare's (HCA) Q1 Earnings Beat on Rising Admissions
HCA Healthcare, Inc. HCA reported first-quarter 2024 adjusted earnings per share (EPS) of $5.36, which beat the Zacks Consensus Estimate by 7%. The bottom line improved 8.7% year over year.
Revenues amounted to $17.3 billion, which improved 11.2% year over year in the quarter under review. The top line outpaced the consensus mark by 2.9%.
The strong quarterly results benefited from expanding patient volumes and a higher number of surgeries, which contributed substantially to the top line of HCA Healthcare. However, the upside was partly offset by escalating salaries and benefits expenses.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
Quarterly Details
Same-facility equivalent admissions advanced 5.2% year over year in the first quarter, while same-facility admissions grew 6.2% year over year. The metrics beat our growth estimates of 4.4% and 3.3%, respectively.
Same-facility revenue per equivalent admission rose 3.5% year over year in the quarter under review and surpassed our growth estimate of 2%.
Same-facility inpatient surgeries grew 1.7% year over year and beat our growth estimate of 1.3%. Same-facility outpatient surgeries declined 2.1% year over year and lagged our growth estimate of 2.5%. Additionally, same-facility emergency room visits advanced 7.2% year over year in the first quarter but missed our growth estimate of 3.1%.
Salaries and benefits, supplies and other operating expenses of $14 billion escalated 12.8% year over year and came higher than our estimate of $13.6 billion.
Adjusted EBITDA improved 5.7% year over year to $3.4 billion in the quarter under review.
HCA Healthcare operated 188 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Mar 31, 2024.
Financial Update (as of Mar 31, 2024)
HCA Healthcare exited the first quarter with cash and cash equivalents of $1.3 billion, up from the 2023-end level of $935 million. It had a leftover capacity of $8 billion under its credit facilities at the first-quarter end.
Total assets of $57 billion increased from $56.2 billion at 2023-end.
Long-term debt, excluding debt issuance costs and discounts, remained flat from 2023-end at $37.2 billion.
Capital expenditures were $1.12 billion minus acquisitions during the quarter under review.
Cash Flows
HCA Healthcare generated cash from operations of $2.5 billion in the first quarter of 2024, which improved 36.9% year over year.
Capital Deployment Update
HCA bought back shares worth $1.18 million in the first quarter. It had a leftover capacity of $5.6 billion under its buyback authorization as of Mar 31, 2024.
The board of directors declared its quarterly cash dividend of 66 cents per share, which will be paid out on Jun 28, 2024, to its shareholders of record as of Jun 14.
2024 View Reaffirmed
Annual revenues are presently estimated to lie between $67.8 billion and $70.3 billion in 2024. The midpoint of the outlook indicates a 6.2% rise from the 2023 reported figure.
Management is currently projecting adjusted EBITDA to be within $12.9-$13.6 billion for 2024. The midpoint of the outlook suggests 3.9% growth from the 2023 figure.
Net income attributable to HCA Healthcare is presently anticipated to lie between $5.2 billion and $5.6 billion. The midpoint of the outlook suggests 3% growth from the 2023 figure.
EPS is currently forecasted to be in the $19.70-$21.20 band for 2024. The midpoint of the guidance implies a 7.6% rise from the 2023 figure.
Capital expenditures, excluding acquisitions, are expected to be around $5.1-$5.3 billion.
Zacks Rank
HCA Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported first-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Elevance Health, Inc. ELV and Molina Healthcare, Inc. MOH beat the Zacks Consensus Estimate.
UnitedHealth Group reported first-quarter 2024 adjusted EPS of $6.91 per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line rose 10.4% year over year. Revenues amounted to $99.8 billion, which improved 8.6% year over year in the quarter under review on the back of strong performance in its UnitedHealthcare and Optum business lines. The top line outpaced the consensus mark of $99.2 billion.
Elevance Health reported first-quarter 2024 adjusted EPS of $10.64, which surpassed the Zacks Consensus Estimate by 0.9%. The bottom line climbed 12.5% year over year. Operating revenues rose 0.9% year over year to almost $42.3 billion in the quarter under review. However, the top line missed the consensus mark by 0.4%.
Molina Healthcare reported first-quarter 2024 adjusted EPS of $5.73, which surpassed the Zacks Consensus Estimate by 5%. However, the bottom line declined 1.4% year over year. Operating revenues rose 21.9% year over year to almost $9.9 billion in the quarter under review and outpaced the consensus mark by 4.3%.
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