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Factors Setting the Tone for HCA Healthcare (HCA) Q3 Earnings
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HCA Healthcare, Inc. (HCA - Free Report) is scheduled to release third-quarter 2022 results on Oct 21, before the opening bell.
Q3 Estimates
The Zacks Consensus Estimate for HCA Healthcare’s third-quarter earnings per share (EPS) is pegged at $3.89, indicating a decline of 14.9% from the prior-year quarter’s reported figure. Our estimates suggest an EPS of $4.07 in the to-be-reported quarter.
The consensus mark for revenues stands at $15 billion, suggesting a 1.5% dip from the year-ago quarter’s reported number. Our estimates indicate total revenues of $15.2 billion for the third quarter.
Earnings Surprise History
HCA Healthcare has a decent earnings surprise history. Its bottom line beat estimates in two of the trailing four quarters and missed the same twice, the average surprise being 4.95%. This is depicted in the chart below:
In the third quarter, HCA Healthcare’s revenues are expected to have gained on improved patient volumes. The Zacks Consensus Estimate for equivalent admissions hints at a 1% rise from the prior-year quarter’s reported figure. Our estimates for the metric, on a reported and same-facility basis, suggest 2% and 4.7% growth, respectively, from the prior-year quarter’s corresponding reported numbers.
Better outpatient volumes resulting from increased same-facility emergency room visits and same-facility outpatient surgeries are likely to have provided an impetus to HCA’s third-quarter revenues. However, the moderation of growth in inpatient admissions might have acted as a partial offset to HCA’s top-line growth.
The consensus mark for the total number of hospitals in the third quarter is pegged at 183, while our estimates suggest the metric at 184.
The bottom line of HCA Healthcare is expected to have suffered due to continued labor costs arising from scarcity of labor, an issue that has been plaguing the entire United States for quite some time. Another potential constraint affecting the whole nation is the persistent inflationary impact on expenses that might have dampened a company's margins in the to-be-reported quarter and HCA is no exception to this trend.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here as elaborated below.
Earnings ESP: HCA Healthcare has an Earnings ESP of -1.39% because the Most Accurate Estimate of $3.84 is pegged lower than the Zacks Consensus Estimate of $3.89. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While an earnings beat looks uncertain for HCA Healthcare, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings beat this time around:
Chimerix, Inc. (CMRX - Free Report) has an Earnings ESP of +33.81% and a Zacks Rank of 2, currently. The Zacks Consensus Estimate for CMRX’s third-quarter 2022 earnings is pegged at $2.10 per share. A loss of 21 cents per share was reported in the prior-year quarter.
The consensus mark for Chimerix’s third-quarter earnings has moved 1.4% north over the past 30 days.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2, currently. The Zacks Consensus Estimate for BMRN's third-quarter 2022 earnings is pegged at 36 cents per share, which doubled from the prior-year quarter’s reported figure.
BioMarin Pharmaceutical’s earnings beat estimates in each of the trailing four quarters.
AmerisourceBergen Corporation has an Earnings ESP of +0.61% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for ABC’s third-quarter 2022 earnings is pegged at $2.58 per share, which indicates an 8% increase from the prior-year quarter’s reported figure.
AmerisourceBergen’s earnings beat estimates in three of the trailing four quarters and missed the mark once.
Image: Bigstock
Factors Setting the Tone for HCA Healthcare (HCA) Q3 Earnings
HCA Healthcare, Inc. (HCA - Free Report) is scheduled to release third-quarter 2022 results on Oct 21, before the opening bell.
Q3 Estimates
The Zacks Consensus Estimate for HCA Healthcare’s third-quarter earnings per share (EPS) is pegged at $3.89, indicating a decline of 14.9% from the prior-year quarter’s reported figure. Our estimates suggest an EPS of $4.07 in the to-be-reported quarter.
The consensus mark for revenues stands at $15 billion, suggesting a 1.5% dip from the year-ago quarter’s reported number. Our estimates indicate total revenues of $15.2 billion for the third quarter.
Earnings Surprise History
HCA Healthcare has a decent earnings surprise history. Its bottom line beat estimates in two of the trailing four quarters and missed the same twice, the average surprise being 4.95%. This is depicted in the chart below:
HCA Healthcare, Inc. Price and EPS Surprise
HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote
Factors to Note
In the third quarter, HCA Healthcare’s revenues are expected to have gained on improved patient volumes. The Zacks Consensus Estimate for equivalent admissions hints at a 1% rise from the prior-year quarter’s reported figure. Our estimates for the metric, on a reported and same-facility basis, suggest 2% and 4.7% growth, respectively, from the prior-year quarter’s corresponding reported numbers.
Better outpatient volumes resulting from increased same-facility emergency room visits and same-facility outpatient surgeries are likely to have provided an impetus to HCA’s third-quarter revenues. However, the moderation of growth in inpatient admissions might have acted as a partial offset to HCA’s top-line growth.
The consensus mark for the total number of hospitals in the third quarter is pegged at 183, while our estimates suggest the metric at 184.
The bottom line of HCA Healthcare is expected to have suffered due to continued labor costs arising from scarcity of labor, an issue that has been plaguing the entire United States for quite some time. Another potential constraint affecting the whole nation is the persistent inflationary impact on expenses that might have dampened a company's margins in the to-be-reported quarter and HCA is no exception to this trend.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here as elaborated below.
Earnings ESP: HCA Healthcare has an Earnings ESP of -1.39% because the Most Accurate Estimate of $3.84 is pegged lower than the Zacks Consensus Estimate of $3.89. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCA Healthcare currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for HCA Healthcare, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings beat this time around:
Chimerix, Inc. (CMRX - Free Report) has an Earnings ESP of +33.81% and a Zacks Rank of 2, currently. The Zacks Consensus Estimate for CMRX’s third-quarter 2022 earnings is pegged at $2.10 per share. A loss of 21 cents per share was reported in the prior-year quarter.
The consensus mark for Chimerix’s third-quarter earnings has moved 1.4% north over the past 30 days.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2, currently. The Zacks Consensus Estimate for BMRN's third-quarter 2022 earnings is pegged at 36 cents per share, which doubled from the prior-year quarter’s reported figure.
BioMarin Pharmaceutical’s earnings beat estimates in each of the trailing four quarters.
AmerisourceBergen Corporation has an Earnings ESP of +0.61% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for ABC’s third-quarter 2022 earnings is pegged at $2.58 per share, which indicates an 8% increase from the prior-year quarter’s reported figure.
AmerisourceBergen’s earnings beat estimates in three of the trailing four quarters and missed the mark once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.