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What's in the Cards for HCA Healthcare's (HCA) Q2 Earnings?

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HCA Healthcare, Inc.  (HCA - Free Report) is scheduled to release second-quarter 2021 results on Jul 20, before the market opens.

In the last reported quarter, the company reported adjusted earnings of $4.14 per share, which outpaced the Zacks Consensus Estimate by 23.6%. The bottom line improved 77.7% year over year, courtesy of higher revenues.

Factors to Note

The company’s second-quarter top line is expected to have benefited from a gradual rise in patient volumes, better payer mix and resumption of non-emergent procedures following the easing of restrictions imposed by the government to curb the COVID-19 spread. Its inpatient revenues are also likely to have gained in the June quarter owing to high acute inpatient volumes. The Zacks Consensus Estimate for HCA Healthcare’s revenues stands at $13.6 billion, suggesting growth of 22.9% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.17, indicating a surge of 111.3% from the year-earlier quarter’s reported figure. This upside is likely to have been backed by improved revenues.

The company’s increased number of outpatient facilities might have provided a boost to patient admissions in the to-be-reported quarter. The Zacks Consensus Estimate for admissions implies a 12.8% improvement from the year-ago period’s reported figure.

Licensed beds of the company are likely to have increased on the back of better admission. The consensus mark for the number of licensed beds indicates a rise of 0.4% from the year-ago quarter’s reported number.

HCA Healthcare is likely to have continued with its dividend payout and share buyback plan, both of which were resumed in January this year.
The consensus estimate for second-quarter patient days implies a 14.8% rise from the year-ago quarter’s actuals.

The company’s performance is likely to have suffered elevated expenses due to higher operating costs and substantial growth-related investments.

What Our Quantitative Model Predicts

Our proven model predicts 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 as you can see below.

Earnings ESP:  HCA Healthcare has an Earnings ESP of +1.16%. This is because the Most Accurate Estimate of $3.21 is pegged higher than the Zacks Consensus Estimate of $3.17. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. Price and EPS Surprise

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

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

Stocks to Consider

Here are some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in their upcoming releases:

Community Health Systems, Inc. (CYH - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank of 3, currently.

MEDNAX, Inc. (MD - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #2, presently.

AmerisourceBergen Corporation has an Earnings ESP of +3.46% and is Zacks #3 Ranked, presently.

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