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HCA Healthcare's (HCA) Earnings Miss in Q1, Decrease Y/Y
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HCA Healthcare, Inc. (HCA - Free Report) reported first-quarter 2020 adjusted earnings of $2.33 per share, missing the Zacks Consensus Estimate by 10.7%. Moreover, the bottom line declined 21.5% year over year due to lower patient volumes.
Quarterly Details
HCA Healthcare’s revenues of $12.8 billion lagged the Zacks Consensus Estimate by 1.6%. However, the top line was up 2.7% from the year-ago period.
Same facility equivalent admissions dipped 0.4% year over year while same facility admissions inched up 0.6%. Same facility revenue per equivalent admission also grew 1.6% year over year.
Same facility inpatient surgeries and same facility outpatient surgeries slid 1.8% and 5.9%, respectively, year over year due to the government-implemented rules to fight COVID-19.
Patient volumes across most services contracted in the last two weeks of the quarter.
Salaries and benefits, supplies and other operating expenses increased 6.8% year over year to $10.7 billion.
Adjusted EBITDA totaled $2.2 billion, down 13.4% year over year.
As of Mar 31, 2020, HCA Healthcare operated 186 hospitals.
As of Mar 31, 2020, the company had cash and cash equivalents of about $731 million, total debt of $34.86 billion and total assets worth $45.421 billion.
In the reported quarter, capex came in at $853 million minus acquisitions.
Cash flows provided by operating activities were $1.375 billion, up 41.2% year over year.
Dividend and Share Buyback Update
HCA Healthcare suspended its quarterly dividend program due to the COVID-19 effect and expects to resume it later.
In the quarter under review, HCA Healthcare bought back shares worth $441 million. As of Mar 31, 2020, it had shares of $2.8 billion left under its suspended buyback authorization.
Business Update
Due to the uncertainty related to the COVID-19 impact, the company withdrew its 2020 guidance.
Some stocks worth considering from the medical sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Centene Corporation (CNC - Free Report) has an Earnings ESP of +21.25% and a Zacks Rank of 2. The company is scheduled to release first-quarter earnings on Apr 28.
Anthem, Inc. is slated to announce first-quarter earnings on Apr 29. The stock has an Earnings ESP of +1.28% and a Zacks Rank #3.
MEDNAX, Inc. (MD - Free Report) is set to report first-quarter earnings on May 7. The stock is #2 Ranked and has an Earnings ESP of +4.15%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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HCA Healthcare's (HCA) Earnings Miss in Q1, Decrease Y/Y
HCA Healthcare, Inc. (HCA - Free Report) reported first-quarter 2020 adjusted earnings of $2.33 per share, missing the Zacks Consensus Estimate by 10.7%. Moreover, the bottom line declined 21.5% year over year due to lower patient volumes.
Quarterly Details
HCA Healthcare’s revenues of $12.8 billion lagged the Zacks Consensus Estimate by 1.6%. However, the top line was up 2.7% from the year-ago period.
Same facility equivalent admissions dipped 0.4% year over year while same facility admissions inched up 0.6%. Same facility revenue per equivalent admission also grew 1.6% year over year.
Same facility inpatient surgeries and same facility outpatient surgeries slid 1.8% and 5.9%, respectively, year over year due to the government-implemented rules to fight COVID-19.
Patient volumes across most services contracted in the last two weeks of the quarter.
Salaries and benefits, supplies and other operating expenses increased 6.8% year over year to $10.7 billion.
Adjusted EBITDA totaled $2.2 billion, down 13.4% year over year.
As of Mar 31, 2020, HCA Healthcare operated 186 hospitals.
HCA Healthcare, Inc. Price and EPS Surprise
HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote
Financial Update
As of Mar 31, 2020, the company had cash and cash equivalents of about $731 million, total debt of $34.86 billion and total assets worth $45.421 billion.
In the reported quarter, capex came in at $853 million minus acquisitions.
Cash flows provided by operating activities were $1.375 billion, up 41.2% year over year.
Dividend and Share Buyback Update
HCA Healthcare suspended its quarterly dividend program due to the COVID-19 effect and expects to resume it later.
In the quarter under review, HCA Healthcare bought back shares worth $441 million. As of Mar 31, 2020, it had shares of $2.8 billion left under its suspended buyback authorization.
Business Update
Due to the uncertainty related to the COVID-19 impact, the company withdrew its 2020 guidance.
Zacks Rank
HCA Healthcare carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases From Medical Sector
Some stocks worth considering from the medical sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Centene Corporation (CNC - Free Report) has an Earnings ESP of +21.25% and a Zacks Rank of 2. The company is scheduled to release first-quarter earnings on Apr 28.
Anthem, Inc. is slated to announce first-quarter earnings on Apr 29. The stock has an Earnings ESP of +1.28% and a Zacks Rank #3.
MEDNAX, Inc. (MD - Free Report) is set to report first-quarter earnings on May 7. The stock is #2 Ranked and has an Earnings ESP of +4.15%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>