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HCA Healthcare, Inc. (HCA - Free Report) reported fourth-quarter 2017 adjusted earnings of $2.12 per share, which surpassed the Zacks Consensus Estimate of $1.86 by 14%. The bottom line also rose nearly 12.2% year over year.
The company reported net income per share of $1.30 in the fourth quarter that includes a non-cash increase in the company’s provision for income taxes of 83 cents per share, stemming from the impact of the Tax Cuts and Jobs Act. This reflects 45% year-over-year decline.
For 2017, the company reported net income per share of $5.95, down 18% year over year.
HCA Healthcare generated revenues of $11.6 billion in the fourth quarter that surpassed the Zacks Consensus Estimate by 3.5%. The reported figure was up 8.6% from the year-ago quarter. The upside was primarily driven by an increase of 2.3% in same facility equivalent admissions and an increase of 3.5% in same facility revenue per equivalent admission compared to the year-ago quarter.
For 2017, the company reported revenues of $43.6 billion, up 5% year over year.
Quarterly Details
Adjusted EBITDA totaled $2.4 billion, up 7.1% year over year.
Same facility equivalent admissions inched up 2.3% year over year, while same facility admissions jumped 1.4%. Same facility revenue per equivalent admission increased 3.5%.
Total operating expenses increased 12% year over year to $10.2 billion.
As of Dec 31, 2017, HCA Healthcare ran 179 hospitals and 120 free-standing surgery centers.
HCA Holdings, Inc. Price, Consensus and EPS Surprise
As of Dec 31, 2017, the company had cash and cash equivalents of $732 million, total long-term debt of $32.8 billion and total assets of $36.6 billion.
During the reported quarter, capital expenditures totaled $982 million, excluding acquisitions. Cash flow provided by operating activities totaled $1.7 billion, up 2.1% year over year.
Share Repurchase Update
The company repurchased 7.2 million shares of its common stock for $576 million in the fourth quarter.
For 2017, the company repurchased 25.1 million shares of its common stock for $2.051 billion.
The company plans to increase its three-year capital expenditures program to pursue growth opportunities in its existing markets. The new capital investment program is expected to be of roughly $10.5 billion, up from the previous three-year spend of nearly $8.2 billion.
Dividend Update
HCA Healthcare has declared a quarterly cash dividend of 35 cents per share on the company’s common stock. The dividend will be paid on Mar 30, 2018 to stockholders of record at the close of business on Mar 1.
The initiation of quarterly dividends reflects the company’s financial strength.
2018 Guidance
The company expects 2018 revenues in the range of $45-$46 billion, adjusted EBIDTA of $8.45-$8.75 billion, EPS of $8.50-$9.00 and capital expenditures of about $3.5 billion.
Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. (ABBV - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) and Abbott Laboratories (ABT - Free Report) have surpassed their respective Zacks Consensus Estimate.
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HCA Healthcare's (HCA) Q4 Earnings, Revenues Beat Estimates (Revised)
HCA Healthcare, Inc. (HCA - Free Report) reported fourth-quarter 2017 adjusted earnings of $2.12 per share, which surpassed the Zacks Consensus Estimate of $1.86 by 14%. The bottom line also rose nearly 12.2% year over year.
The company reported net income per share of $1.30 in the fourth quarter that includes a non-cash increase in the company’s provision for income taxes of 83 cents per share, stemming from the impact of the Tax Cuts and Jobs Act. This reflects 45% year-over-year decline.
For 2017, the company reported net income per share of $5.95, down 18% year over year.
HCA Healthcare generated revenues of $11.6 billion in the fourth quarter that surpassed the Zacks Consensus Estimate by 3.5%. The reported figure was up 8.6% from the year-ago quarter. The upside was primarily driven by an increase of 2.3% in same facility equivalent admissions and an increase of 3.5% in same facility revenue per equivalent admission compared to the year-ago quarter.
For 2017, the company reported revenues of $43.6 billion, up 5% year over year.
Quarterly Details
Adjusted EBITDA totaled $2.4 billion, up 7.1% year over year.
Same facility equivalent admissions inched up 2.3% year over year, while same facility admissions jumped 1.4%. Same facility revenue per equivalent admission increased 3.5%.
Total operating expenses increased 12% year over year to $10.2 billion.
As of Dec 31, 2017, HCA Healthcare ran 179 hospitals and 120 free-standing surgery centers.
HCA Holdings, Inc. Price, Consensus and EPS Surprise
HCA Holdings, Inc. Price, Consensus and EPS Surprise | HCA Holdings, Inc. Quote
Financial Update
As of Dec 31, 2017, the company had cash and cash equivalents of $732 million, total long-term debt of $32.8 billion and total assets of $36.6 billion.
During the reported quarter, capital expenditures totaled $982 million, excluding acquisitions. Cash flow provided by operating activities totaled $1.7 billion, up 2.1% year over year.
Share Repurchase Update
The company repurchased 7.2 million shares of its common stock for $576 million in the fourth quarter.
For 2017, the company repurchased 25.1 million shares of its common stock for $2.051 billion.
The company plans to increase its three-year capital expenditures program to pursue growth opportunities in its existing markets. The new capital investment program is expected to be of roughly $10.5 billion, up from the previous three-year spend of nearly $8.2 billion.
Dividend Update
HCA Healthcare has declared a quarterly cash dividend of 35 cents per share on the company’s common stock. The dividend will be paid on Mar 30, 2018 to stockholders of record at the close of business on Mar 1.
The initiation of quarterly dividends reflects the company’s financial strength.
2018 Guidance
The company expects 2018 revenues in the range of $45-$46 billion, adjusted EBIDTA of $8.45-$8.75 billion, EPS of $8.50-$9.00 and capital expenditures of about $3.5 billion.
Zacks Rank and Performance of Other Stocks
HCA Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. (ABBV - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) and Abbott Laboratories (ABT - Free Report) have surpassed their respective Zacks Consensus Estimate.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
(We are reissuing this article to correct a mistake. The original article, issued on Jan 30, 2018, should no longer be relied upon.)