Back to top

Analyst Blog

HCA Holdings Inc. (HCA - Snapshot Report) reported fourth-quarter 2013 operating net income of 92 cents per share which surpassed the Zacks Consensus Estimate of 86 cents by nearly 7%. The results also exceeded the prior-year earnings by a penny.

Continued focus on enhancing patient quality and experience, efficiency and growth aided the outperformance.

Operational Update

Total revenues grossed $8.84 billion during the quarter which came almost in line with the Zacks Consensus Estimate. However, the results increased 4.8% year over year. The top-line growth is attributable to greater revenue per equivalent admission and improvements in total surgical volume of same facility.

Revenue per equivalent admission rose 3.9% on a same facility basis. Growth was aided by changes in payor mix and increasing acuity.

Same facility equivalent admissions decreased 1% year over year during the reported quarter. Same facility admissions also declined 1.8% year over year in the quarter under review. The decline was attributable to lower pulmonary and short-stay admissions.

Operating expense per equivalent admission increased 3.5% year over year in fourth quarter of 2013.

Total expense of HCA Holdings amounted to $7.17 billion during the quarter, up 3.7% year over year. The increase in expenses was driven by higher salaries and benefits, supplies and other operating expenses.

Adjusted earnings before interest tax depreciation and amortization (EBITDA) increased 6.7% year over year to $1.71 billion in the reported quarter.

HCA Holdings operated with 165 hospitals during the reported quarter, 3 more from the year-ago quarter.

The company also operated in 115 freestanding outpatient surgery centers during the quarter, up from 112 centers reported in the comparable year-ago period.

Full-year 2013 Highlights

HCA Holdings’ net income excluding losses on sales facilities, legal claim costs and loss on retirement of debt came at $3.41 per share for the full-year 2013, down 8.1% from 2012 number.

Total revenues of HCA Holdings grossed $34.18 billion for 2013, up 3.5% year over year.

Net cash provided from operating activities slid 11.9% to $3.68 billion during 2013.

Financial Update

HCA Holdings exited the third quarter of 2013 with total assets of $28.83 billion, up 2.7% from 2012-end.

As of Sep 30, 2013, HCA Holdings had cash and cash equivalents of $414 million which plunged 41.3% from the prior-year end level.

Long-term debt of HCA Holdings stood at $27.59 billion at the end of 2013. It increased 0.3% from Dec 31, 2012-level.

Net cash flows from operating activities stood at $1.23 billion during the quarter, down 2.9% year over year.

Share Repurchase

During the reported quarter, HCA Holdings repurchased nearly 10.6 million shares for approximately $500 million from some of its sponsors using the draws under its revolving credit facilities.

Guidance

HCA Holdings expects its 2014 revenues to lie in the range of $35.50 billion and $36.50 billion. Additionally, adjusted earnings per share for 2014 are expected to hover between $3.45 and $3.75.

Zacks Rank

HCA Holdings presently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare sector include Almost Family Inc. (AFAM - Snapshot Report), Addus HomeCare Corporation (ADUS - Snapshot Report) and VCA Antech Inc. (WOOF - Snapshot Report). While Almost Family carries a Zacks Rank #1 (Strong Buy), both Addus HomeCare and VCA Antech bear a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%