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What's in Store for HCA Healthcare's (HCA) Q3 Earnings?

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HCA Healthcare, Inc.  (HCA - Free Report) is scheduled to release third-quarter 2021 results on Oct 22, before the market opens.

For the last reported quarter, the company reported adjusted earnings of $4.37 per share, which beat the Zacks Consensus Estimate of $3.17 by 37.9%. The bottom line also improved 191.3% year over year on higher revenues.

It witnessed solid patient volumes in the quarter.

Factors to Note

In the to-be-reported quarter, the company is expected to have witnessed higher patient volume. HCA Healthcare is likely to have seen an increase in its inpatient admissions and outpatient surgeries from the prior-year period’s reported figure. Other significant factors that might have contributed to the upside are better payer mix, resumption of non-emergency procedures, etc.
The Zacks Consensus Estimate for HCA Healthcare’s revenues stands at $14.5 billion, suggesting growth of 8.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.92, indicating a surge of 104.2% 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 6.9% 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 0.5% rise 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 earlier this year. This must have lent an extra cushion to its performance.

The consensus estimate for third-quarter patient days suggests a 7% 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 +6.41%. This is because the Most Accurate Estimate of $4.17 is pegged higher than the Zacks Consensus Estimate of $3.92. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

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

Acadia Healthcare Company, Inc. (ACHC - Free Report) has an Earnings ESP of +3.00% and a Zacks Rank of 3, currently.

MEDNAX, Inc. (MD - Free Report) has an Earnings ESP of +4.41% and is a #3 Ranked player, presently.

Bausch Health Cos Inc. (BHC - Free Report) has an Earnings ESP of +0.75% and is Zacks #3 Ranked, presently.