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HCA Healthcare (HCA) Beats on Q1 Earnings, Keeps Guidance

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HCA Healthcare, Inc. (HCA - Free Report) reported first-quarter 2018 adjusted earnings of $2.33 per share, surpassing the Zacks Consensus Estimate of $2.07 by 12.6%. Moreover, the bottom line shot up nearly 34% year over year.

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

 

The company’s net income per share of $3.18 in the first quarter includes 85 cents from the sale of Oklahoma facilities and a tax benefit of 26 cents. This reflects a substantial 83% year-over-year increase.

Quarterly Details

HCA Healthcare generated revenues of $11.4 billion, beating the Zacks Consensus Estimate of $11.3 billion. The reported figure was up 7.5% from the year-ago quarter.

Same facility equivalent admissions inched up 1.8% year over year while same facility admissions increased 2.2%. Same facility revenue per equivalent admission rose 3.9%.

Expenses increased nearly 8% year over year to $9.3 billion.

Adjusted EBITDA totaled $2.1 billion, up 5.6% year over year.

As of Mar 31, 2018, HCA Healthcare operated 178 hospitals and 120 freestanding surgery centers.

Financial Update

As of Mar 31, 2018, the company had cash and cash equivalents of about $1.1 billion, total debt of $33.3 billion and total assets of $37.3 billion.

During the reported quarter, capital expenditures totaled $694 million excluding acquisitions. Cash flows from operating activities were $1.3 billion, up 1.6% year over year.

Dividend and Share Repurchase Update

HCA Healthcare has announced a quarterly cash dividend of 35 cents per share payable Jun 29 to stockholders of record at the close of business on Jun 1.

The company bought back 4.37 million shares for $423 million and has worth $1.379 billion remaining under its $2-billion repurchase authorization.

2018 Outlook Reiterated

The company expects 2018 revenues in the range of $45-$46 billion, besides an adjusted EBIDTA of $8.45-$8.75 billion, EPS of $8.50-$9 and capital expenditures of about $3.5 billion.

Zacks Rank and Performance of Other Stocks

HCA Healthcare carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the HMO (Health Maintenance Organizations) industry having reported first-quarter earnings so far, the bottom line of Anthem Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimate.

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