We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HCA Healthcare, Inc. (HCA - Free Report) reported third-quarter 2022 adjusted earnings of $3.93 per share, which beat the Zacks Consensus Estimate by 1%. However, the bottom line dropped 14% year over year.
Revenues of HCA decreased 2% year over year to $15 billion in the third quarter and missed the consensus mark by a whisker.
The quarterly results suffered the adversities inflicted by Hurricane Ian on HCA’s facilities across Florida. The deadly storm resulted in additional expenses and a loss of revenues, anticipated to be $35 million. The amount does not include any potential insurance recovery.
Though the Florida facilities suffered a headwind due to the hurricane, increase in same-facility equivalent admissions in its other U.S. facilities and a slight dip in overall expenses might provide some respite to HCA’s quarterly results.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
Same-facility equivalent admissions rose 2.3% year over year in the third quarter, while same-facility admissions fell 1.5% year over year.
Same-facility revenue per equivalent admission fell 3.5% year over year in the quarter under review.
Same-facility inpatient surgeries and same-facility outpatient surgeries improved 5.6% and 2%, respectively, year over year. Same-facility emergency room visits dipped 1.3% year over year in the third quarter.
Salaries and benefits, supplies, and other operating expenses of $12.1 billion dipped marginally year over year. Our estimate for the metric stands at $12.3 billion in the quarter under review.
Adjusted EBITDA dropped 10% year over year to $2.9 billion, while our estimate indicates the metric to be $3 billion.
HCA Healthcare operated 182 hospitals and roughly 2,300 ambulatory sites of care across 20 states and the U.K. as of Sep 30, 2022.
Financial Update (as of Sep 30, 2022)
HCA Healthcare exited the third quarter with cash and cash equivalents of $999 million, which tumbled 31.2% from the 2021-end level. It had $3.9 billion available under its credit facilities at the third-quarter end.
Total assets increased 1.5% from the figure at 2021 end to $51.5 billion.
Long-term debt, less debt issuance costs and discounts came in at $37.5 billion, up 9.2% from the figure as of Dec 31, 2021.
Capital expenditures amounted to $1.1 billion minus acquisitions during the third quarter.
During the first nine months ended Sep 30, 2022, net cash provided by operating activities fell 8% from the prior-year comparable period’s level to $6 billion.
Share Repurchase and Dividend Update
HCA Healthcare bought back shares worth $698 million in the third quarter. As of Sep 30, 2022, it had $3.1 billion left under its buyback authorization.
Management approved a quarterly cash dividend of 56 cents per share on its common stock. The dividend will be paid out on Dec 28, 2022, to its shareholders of record as of Dec 14.
2022 View
Earlier, management had issued guidance for certain metrics.
Annual revenues were anticipated within $59.5-$61.5 billion, the midpoint indicating a 3% rise from the 2021 reported figure. Adjusted EBITDA was projected between $11.8 billion and $12.4 billion, the midpoint suggesting a 4% decline from the reported figure of 2021.
HCA Healthcare forecast 2022 EPS within the $16.40-$17.60 band. The midpoint of the outlook implies a 19.7% fall from the 2021 reported figure.
Capex, excluding acquisitions, was estimated at around $4.2 billion for this year. The figure reflected a rise of 17% from the 2021 figure.
Of the Medical sector players that have reported third-quarter results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health Inc. (ELV - Free Report) and Tenet Healthcare Corporation (THC - Free Report) beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported third-quarter 2022 adjusted earnings of $5.79 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line improved from $4.52 per share a year ago. Revenues of UNH were $80.9 billion in the third quarter, which climbed from $72.3 billion a year ago. The top line outpaced the consensus mark of $80.7 billion. The medical care ratio of UnitedHealth Group improved 140 basis points year over year to 81.6% during the quarter under review.
Elevance Health’s third-quarter 2022 earnings of $7.53 per share outpaced the Zacks Consensus Estimate of $7.10. The bottom line also improved 10.9% year over year. Operating revenues of ELV in the third quarter totaled $39,625 million, which rose 11.5% year over year. The top line also beat the consensus mark of $39,106 million. As of Sep 30, 2022, medical enrollment of ELV amounted to 47.3 million, which grew 4.9% year over year,
Tenet Healthcare reported third-quarter 2022 adjusted earnings of $1.44 per share, which beat the Zacks Consensus Estimate by 12.5%. However, the bottom line declined 27.6% year over year. THC’s net operating revenues of $4.8 billion fell 1.9% year over year in the third quarter. The top line outpaced the consensus mark by a whisker. THC’s operating expenses of $4.3 billion decreased 9.7% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HCA Healthcare (HCA) Q3 Earnings Beat, Revenues Decline Y/Y
HCA Healthcare, Inc. (HCA - Free Report) reported third-quarter 2022 adjusted earnings of $3.93 per share, which beat the Zacks Consensus Estimate by 1%. However, the bottom line dropped 14% year over year.
Revenues of HCA decreased 2% year over year to $15 billion in the third quarter and missed the consensus mark by a whisker.
The quarterly results suffered the adversities inflicted by Hurricane Ian on HCA’s facilities across Florida. The deadly storm resulted in additional expenses and a loss of revenues, anticipated to be $35 million. The amount does not include any potential insurance recovery.
Though the Florida facilities suffered a headwind due to the hurricane, increase in same-facility equivalent admissions in its other U.S. facilities and a slight dip in overall expenses might provide some respite to HCA’s quarterly results.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
Quarterly Details
Same-facility equivalent admissions rose 2.3% year over year in the third quarter, while same-facility admissions fell 1.5% year over year.
Same-facility revenue per equivalent admission fell 3.5% year over year in the quarter under review.
Same-facility inpatient surgeries and same-facility outpatient surgeries improved 5.6% and 2%, respectively, year over year. Same-facility emergency room visits dipped 1.3% year over year in the third quarter.
Salaries and benefits, supplies, and other operating expenses of $12.1 billion dipped marginally year over year. Our estimate for the metric stands at $12.3 billion in the quarter under review.
Adjusted EBITDA dropped 10% year over year to $2.9 billion, while our estimate indicates the metric to be $3 billion.
HCA Healthcare operated 182 hospitals and roughly 2,300 ambulatory sites of care across 20 states and the U.K. as of Sep 30, 2022.
Financial Update (as of Sep 30, 2022)
HCA Healthcare exited the third quarter with cash and cash equivalents of $999 million, which tumbled 31.2% from the 2021-end level. It had $3.9 billion available under its credit facilities at the third-quarter end.
Total assets increased 1.5% from the figure at 2021 end to $51.5 billion.
Long-term debt, less debt issuance costs and discounts came in at $37.5 billion, up 9.2% from the figure as of Dec 31, 2021.
Capital expenditures amounted to $1.1 billion minus acquisitions during the third quarter.
During the first nine months ended Sep 30, 2022, net cash provided by operating activities fell 8% from the prior-year comparable period’s level to $6 billion.
Share Repurchase and Dividend Update
HCA Healthcare bought back shares worth $698 million in the third quarter. As of Sep 30, 2022, it had $3.1 billion left under its buyback authorization.
Management approved a quarterly cash dividend of 56 cents per share on its common stock. The dividend will be paid out on Dec 28, 2022, to its shareholders of record as of Dec 14.
2022 View
Earlier, management had issued guidance for certain metrics.
Annual revenues were anticipated within $59.5-$61.5 billion, the midpoint indicating a 3% rise from the 2021 reported figure. Adjusted EBITDA was projected between $11.8 billion and $12.4 billion, the midpoint suggesting a 4% decline from the reported figure of 2021.
HCA Healthcare forecast 2022 EPS within the $16.40-$17.60 band. The midpoint of the outlook implies a 19.7% fall from the 2021 reported figure.
Capex, excluding acquisitions, was estimated at around $4.2 billion for this year. The figure reflected a rise of 17% from the 2021 figure.
Zacks Rank
HCA Healthcare carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported third-quarter results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health Inc. (ELV - Free Report) and Tenet Healthcare Corporation (THC - Free Report) beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported third-quarter 2022 adjusted earnings of $5.79 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line improved from $4.52 per share a year ago. Revenues of UNH were $80.9 billion in the third quarter, which climbed from $72.3 billion a year ago. The top line outpaced the consensus mark of $80.7 billion. The medical care ratio of UnitedHealth Group improved 140 basis points year over year to 81.6% during the quarter under review.
Elevance Health’s third-quarter 2022 earnings of $7.53 per share outpaced the Zacks Consensus Estimate of $7.10. The bottom line also improved 10.9% year over year. Operating revenues of ELV in the third quarter totaled $39,625 million, which rose 11.5% year over year. The top line also beat the consensus mark of $39,106 million. As of Sep 30, 2022, medical enrollment of ELV amounted to 47.3 million, which grew 4.9% year over year,
Tenet Healthcare reported third-quarter 2022 adjusted earnings of $1.44 per share, which beat the Zacks Consensus Estimate by 12.5%. However, the bottom line declined 27.6% year over year. THC’s net operating revenues of $4.8 billion fell 1.9% year over year in the third quarter. The top line outpaced the consensus mark by a whisker. THC’s operating expenses of $4.3 billion decreased 9.7% year over year.