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HCA Healthcare (HCA) Beats on Q2 Earnings, Revises Guidance

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HCA Healthcare, Inc. (HCA - Free Report) reported second-quarter 2018 adjusted earnings of $2.29 per share, surpassing the Zacks Consensus Estimate of $2.14 by 7%. Moreover, the bottom line shot up nearly 32% year over year.


The company’s net income per share of $2.31 in the second quarter includes 2 cents gained from the sale of facilities. This upside reflects a substantial 32% year-over-year surge.

Quarterly Details

HCA Healthcare generated revenues of $11.5 billion, beating the Zacks Consensus Estimate of $11.3 billion. The reported figure was up 7.4% from the year-ago period.

Same facility equivalent admissions increased 2.8% year over year while same facility admissions rose 2.7%. Same facility revenue per equivalent admission grew 3.6%.

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

Adjusted EBITDA totaled $2.2 billion, up 6.6% year over year.

As of June 30, 2018, HCA operated 178 hospitals and around 1,800 sites of care including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics.

Financial Update

As of Jun 30, 2018, the company had cash and cash equivalents of about $868 million, total debt of $33.2 billion and total assets of $37.7 billion.

During the reported quarter, capital expenditures totaled $880 million excluding acquisitions. Cash flows from operating activities were $1.5 billion, up 12.6% year over year.

Dividend and Share Repurchase Update

HCA Healthcare has announced a quarterly cash dividend of 35 cents per share payable Sep 28 to stockholders of record at the close of business on Sep 4.

The company bought back 4.67 million shares for $470 million in the second quarter and has worth $910 million remaining under its current repurchase authorization.

2018 Outlook Updated

The company expects 2018 revenues in the range of $45.5-$46.5 billion besides an adjusted EBIDTA of $$8.65-$8.85 billion, EPS of $9.00-$9.40 and capital expenditures of about $3.5 billion.

Zacks Rank

HCA Healthcare carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

UnitedHealth Group Incorporated’s (UNH - Free Report) second-quarter bottom line beat estimates on the back of higher revenues and solid performances by both segments in the last reported quarter.

Centene Inc.’s (CNC - Free Report) second-quarter earnings surpassed estimates, majorly driven by solid revenues and membership growth.

Anthem Inc. came up with an earnings beat in the second quarter, riding on a strong medical cost performance.

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