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HCA Healthcare (HCA) Q3 Earnings Miss Estimates, Down Y/Y

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HCA Healthcare, Inc.’s (HCA - Free Report) third-quarter 2020 adjusted earnings of $1.92 per share missed the Zacks Consensus Estimate by 28.6%. Further, the bottom line declined 13.9% year over year due to lower patient admissions and higher costs.

Quarterly Details

HCA Healthcare’s revenues of $13.3 billion beat the Zacks Consensus Estimate by 0.1%. The top line also improved 4.9% from the year-ago period.

Same facility equivalent admissions declined 9% year over year, while same facility admissions tumbled 3.8% year over year. However, same facility revenue per equivalent admission grew 14.8% year over year on account of higher acuity of patients treated and favorable payer mix witnessed in the third quarter.

Same facility inpatient surgeries and same facility outpatient surgeries slid 6.8% and 6.3%, respectively, year over year.

Salaries and benefits, supplies and other operating expenses inched up 0.6% year over year to $10.5 billion.

Adjusted EBITDA totaled $2.1 billion, down 10.2% year over year.

As of Sep 30, 2020, HCA Healthcare operated 187 hospitals.

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote

Financial Update

As of Sep 30, 2020, the company had cash and cash equivalents of $6.6 billion, comparing favorably from the 2019-end figure of $621 million. Total assets came in at $51.02 billion as of Sep 30, 2020, up 13.2% from 2019-end level.

Total debt of nearly $31 billion as of Sep 30, 2020 decreased 8.2% from 2019-end level.

In the reported quarter, capex came in at $489 million minus acquisitions.

Cash flows provided by operating activities were $2.7 billion, up 27.8% year over year.

Zacks Rank & Peer Releases

HCA Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the medical space that have reported third-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and Tenet Healthcare Corporation (THC - Free Report) beat estimates.

Upcoming Q3 Release

Alexion Pharmaceuticals, Inc. has an Earnings ESP of +0.84% and a Zacks Rank #3. The company is scheduled to release third-quarter 2020 earnings on Oct 29.

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