HCA Healthcare Beats on Q3 Earnings, Reaffirms 2024 EPS View

HCA Healthcare, Inc. HCA reported third-quarter 2024 adjusted earnings per share (EPS) of $5.05, which beat the Zacks Consensus Estimate by 1.6%. The bottom line improved 29.2% year over year.Revenues amounted to $17.5 billion, which improved 7.9% year over year in the quarter under review. However, the top line missed the consensus mark by a whisker.The third-quarter earnings benefited from higher admissions and a higher number of inpatient and same-facility emergency room visits, which contributed substantially to the top line of HCA Healthcare. However, higher salaries and benefits expenses partially offset the positives. Additional expenses due to Hurricane Helene also impacted the results.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.HCA Healthcare, Inc. Price, Consensus and EPS Surprise HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. QuoteQuarterly DetailsSame-facility equivalent admissions increased 4.5% year over year in the third quarter, while same-facility admissions grew 4.5% year over year. Same-facility equivalent admissions beat the consensus mark by 1.3%, while same-facility admissions missed the consensus mark.Same-facility revenue per equivalent admission rose 2.5% year over year in the quarter under review and surpassed the consensus estimate by 0.7%.Same-facility inpatient surgeries grew 1.6% year over year but missed our growth estimate of 2.2%. Same-facility outpatient surgeries declined 2% year over year, wider than our estimate of 0.7%. Additionally, same-facility emergency room visits rose 4.6% year over year in the third quarter but missed our growth estimate of 4.9%.Salaries and benefits, supplies and other operating expenses of $14.2 billion escalated 6.6% year over year and matched our estimate of $14.2 billion.Adjusted EBITDA improved 13.4% year over year to $3.3 billion in the quarter under review.HCA Healthcare operated 187 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Sept. 30, 2024.Financial Update (as of Sept. 30, 2024)HCA Healthcare exited the third quarter with cash and cash equivalents of $2.9 billion, up from the 2023-end level of $935 million. It had a leftover capacity of approximately $8 billion under its credit facilities at the third-quarter end.Total assets of $59.5 billion increased from $56.2 billion at 2023-end.Long-term debt, excluding debt issuance costs and discounts, increased to $38.3 billion from $37.2 billion at the end of 2023.Capital expenditures were $1.19 billion minus acquisitions during the quarter under review.Cash FlowsHCA Healthcare generated $3.5 billion in cash from operations in the third quarter of 2024, an increase of 41.8% year over year.Capital Deployment UpdateHCA bought back shares worth $1.8 billion in the third quarter. It had a leftover capacity of $2.4 billion under its buyback authorization as of Sept. 30, 2024.The board of directors declared its quarterly cash dividend of 66 cents per share, which will be paid on Dec. 27, 2024, to its shareholders of record as of Dec. 13.Fourth-Quarter Hurricane ImpactThe company expects to incur expenses and loss of revenues from Hurricane Helene and Milton of $200-$300 million or 60-90 cents per share in the fourth quarter of 2024.2024 View ReaffirmedAnnual revenues are presently estimated to be between $69.8 billion and $71.8 billion in 2024. The midpoint of the outlook indicates an 8.9% rise from the 2023 reported figure.Management currently projected adjusted EBITDA in the range of $13.8-$14.3 billion for 2024. The midpoint of the outlook suggests 10.2% growth from the 2023 figure.Net income attributable to HCA Healthcare is presently anticipated to be between $5.7 billion and $6 billion. The midpoint of the outlook suggests 11.6% growth from the 2023 figure.EPS is currently forecasted to be in the $21.60-$22.8 band for 2024. The midpoint of the guidance implies a 17% rise from the 2023 figure.Capital expenditures, excluding acquisitions, are expected to be around $5 billion.2025 OutlookHCA’s adjusted EBITDA and diluted earnings per share growth in 2025 are expected to be near or a bit above the upper end of its long-term growth range of 4-6% and 8-12%, respectively.Zacks RankHCA 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 ReleasesOf the Medical sector players that have reported third-quarter results so far, the bottom lines of UnitedHealth Group Incorporated UNH, Abbott Laboratories ABT and Molina Healthcare, Inc. MOH beat the Zacks Consensus Estimate.UnitedHealth Group reported third-quarter 2024 adjusted EPS of $7.15, which surpassed the Zacks Consensus Estimate by 1.9%. The bottom line improved 9% year over year.Revenues rose 9.1% year over year to $100.8 billion, attributable to a higher number of people served through the UnitedHealthcare and Optum businesses. The top line beat the consensus mark by 1.3%.Abbott Laboratories reported third-quarter 2024 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 0.8%. The figure also improved 6.1% from the prior-year quarter’s level.Worldwide sales of $10.64 billion were up 4.9% year over year on a reported basis. The top line beat the Zacks Consensus Estimate by 0.7%.Molina Healthcare reported third-quarter 2024 adjusted EPS of $6.01, which beat the Zacks Consensus Estimate by 0.8%. Also, the bottom line grew 19% from the year-ago period.Total revenues amounted to $10.3 billion, which improved 20.9% year over year. Also, the top line outpaced the consensus mark by 3.8%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Molina Healthcare, Inc (MOH): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks