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HCA Healthcare (HCA) Q2 Earnings and Revenues Miss Estimates
July 25, 2017

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Have you been eager to see how HCA Healthcare, Inc. (HCA - Free Report) performed in Q2 in comparison with the market expectations?

Let’s quickly scan through the key facts from this leading hospital company’s earnings release this morning.

An Earnings Miss

HCA Healthcare came out with adjusted earnings per share of $1.77, missing the Zacks Consensus Estimate of $1.80.

The earnings miss was driven by growth in expenses which outpaced revenue growth.

How Was the Estimate Revision Trend?

The earnings estimate revisions for HCA Healthcare did not show a major change prior to the earnings release.  But the same has gone down by 0.5% over the past 30 days.

Before posting earnings miss in Q2, the company delivered positive surprises in each three of the trailing four quarters.

As a result, the company overall surpassed the Zacks Consensus Estimate by an average of 4.3% in the trailing four quarters.

HCA Holdings, Inc. Price and EPS Surprise

HCA Holdings, Inc. Price and EPS Surprise | HCA Holdings, Inc. Quote

Revenue a Tad Lower

HCA Healthcare posted revenues of $10.73 billion, a tad lower than the Zacks Consensus Estimate of $10.74 billion. The reported figure was up from 4% from the year-ago quarter.

Key Stats to Note

Adjusted EBITDA totaled $2.090 billion up 1.9% year over year.

Same facility equivalent admissions increased 1.3% year over year, while same facility admissions increased 0.8%. Same facility revenue per equivalent admission increased 2%.

Salaries and benefits, supplies and other operating expenses totaled $8.656 billion up 4.6% year over year.

As of Jun 30, 2017, HCA Healthcare operated 172 hospitals and 119 freestanding surgery centers.

Guidance Update

The company updated its 2017 earnings guidance. It expects revenues in the range of $43 billion -$44 billion, adjusted EBIDTA of $ 8.35–$8.50, EPS of $7.00–$7.30 and capital expenditures of nearly $2.9 billion.

What Zacks Rank Says

HCA Healthcare carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here).

Check back later for our full write up on this HCA Healthcare earnings report!
 

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