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HCA Healthcare, Inc. (HCA - Free Report) unveiled a comprehensive business outlook, setting the stage for robust growth over the next five years. Focused on adjusted EBITDA, the company aims for a 4-6% annual growth trajectory, accompanied by a steady adjusted EBITDA margin ranging between 19-20%.
The projected adjusted EBITDA for the current year hovers between $12.3-$12.6 billion, indicating 3.2% growth from 2022. Net income expectations for HCA Healthcare in 2023 fall between $4.94 billion and $5.13 billion.
Over the five-year horizon, HCA anticipates substantial 8-12% annual growth in earnings per share (EPS). For 2023, the forecasted EPS is in the $17.80-$18.50 range, indicating a notable 7.5% increase from 2022. The company foresees enhanced efficiency and patient experience through strategic investments in technology and innovation, with expectations for adjusted EBITDA and EPS aligning with the outlined ranges in 2024.
In terms of operational metrics, HCA projects a 2-3% annual increase in equivalent admissions, coupled with an equivalent rise in revenue per equivalent admission. As of the third quarter, the company boasted 183 hospitals and around 2,300 ambulatory care sites, underpinning its strong market presence.
Furthermore, HCA maintains a disciplined approach to financial management, expecting capital expenditures to remain within 45-55% of operating cash flow. The bulk of surplus cash is earmarked for share repurchases through a structured stock repurchase plan, with a significant $1.1 billion worth of shares already repurchased in Q3 2023.
In summary, HCA Healthcare's analytical and progressive approach, coupled with strategic investments, positions it for sustained growth, operational efficiency, and a commitment to shareholder value over the coming years.
Price Performance
Shares of HCA Healthcare have gained 4.6% in a year compared with the industry’s increase of 2.6%.
The Zacks Consensus Estimate for Enovis’ current-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 14.9% year-over-year increase to $6.64 per share. It has witnessed eight upward estimate revisions over the past 30 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago.
The Zacks Consensus Estimate for Molina Healthcare’s 2023 bottom line is pegged at $20.83 per share, suggesting 16.2% year-over-year growth. It beat earnings estimates in all the last four quarters, with an average surprise of 7.5%. The consensus mark for MOH’s current year revenues indicates 4.2% growth from a year ago.
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HCA Healthcare (HCA) Unveils Ambitious 5-Year Growth Targets
HCA Healthcare, Inc. (HCA - Free Report) unveiled a comprehensive business outlook, setting the stage for robust growth over the next five years. Focused on adjusted EBITDA, the company aims for a 4-6% annual growth trajectory, accompanied by a steady adjusted EBITDA margin ranging between 19-20%.
The projected adjusted EBITDA for the current year hovers between $12.3-$12.6 billion, indicating 3.2% growth from 2022. Net income expectations for HCA Healthcare in 2023 fall between $4.94 billion and $5.13 billion.
Over the five-year horizon, HCA anticipates substantial 8-12% annual growth in earnings per share (EPS). For 2023, the forecasted EPS is in the $17.80-$18.50 range, indicating a notable 7.5% increase from 2022. The company foresees enhanced efficiency and patient experience through strategic investments in technology and innovation, with expectations for adjusted EBITDA and EPS aligning with the outlined ranges in 2024.
In terms of operational metrics, HCA projects a 2-3% annual increase in equivalent admissions, coupled with an equivalent rise in revenue per equivalent admission. As of the third quarter, the company boasted 183 hospitals and around 2,300 ambulatory care sites, underpinning its strong market presence.
Furthermore, HCA maintains a disciplined approach to financial management, expecting capital expenditures to remain within 45-55% of operating cash flow. The bulk of surplus cash is earmarked for share repurchases through a structured stock repurchase plan, with a significant $1.1 billion worth of shares already repurchased in Q3 2023.
In summary, HCA Healthcare's analytical and progressive approach, coupled with strategic investments, positions it for sustained growth, operational efficiency, and a commitment to shareholder value over the coming years.
Price Performance
Shares of HCA Healthcare have gained 4.6% in a year compared with the industry’s increase of 2.6%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Medical space are Enovis Corporation (ENOV - Free Report) , Centene Corporation (CNC - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Enovis’ current-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 14.9% year-over-year increase to $6.64 per share. It has witnessed eight upward estimate revisions over the past 30 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago.
The Zacks Consensus Estimate for Molina Healthcare’s 2023 bottom line is pegged at $20.83 per share, suggesting 16.2% year-over-year growth. It beat earnings estimates in all the last four quarters, with an average surprise of 7.5%. The consensus mark for MOH’s current year revenues indicates 4.2% growth from a year ago.