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HCA (HCA) Up 3.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for HCA Holdings (HCA - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is HCA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
HCA Healthcare's Q2 Earnings Beat Estimates, Fall Y/Y
HCA Healthcare reported second-quarter 2020 adjusted earnings of $1.50 per share. The Zacks Consensus Estimate was of a loss of 94 cents per share. However, the bottom line declined 32.1% year over year due to lower admissions.
Quarterly Details
HCA Healthcare’s revenues of $11.1 billion beat the Zacks Consensus Estimate by 17.7%. However, the top line declined 12.2% from the year-ago period.
Same facility equivalent admissions tumbled 20.1% year over year while same facility admissions dropped 12.8% year over year. However, same facility revenue per equivalent admission grew 10% year over year.
Same facility inpatient surgeries and same facility outpatient surgeries slid 15.7% and 32.6%, respectively, year over year.
Patient volumes across most services contracted in April due to strict adherence to state and local policies for restricting the spread of COVID-19. However, patient volumes improved in May and June as states began to resume and allow non-emergent procedures.
Salaries and benefits, supplies and other operating expenses decreased 10.6% year over year to $9.2 billion.
Adjusted EBITDA totaled $2.6 billion, up 16.3% year over year.
As of Jun 30, 2020, HCA Healthcare operated 186 hospitals.
Financial Update
As of Jun 30, 2020, the company had cash and cash equivalents of $4.6 billion, total debt of $30.9 billion and total assets worth $48.7 billion.
In the reported quarter, capex came in at $745 million minus acquisitions.
Cash flows provided by operating activities were $8.72 billion, up 336.8% year over year.
As of Jun 30, 2020, HCA Healthcare had $7.72 billion of availability under its credit facilities.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 219.47% due to these changes.
VGM Scores
Currently, HCA has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, HCA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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HCA (HCA) Up 3.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for HCA Holdings (HCA - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is HCA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
HCA Healthcare's Q2 Earnings Beat Estimates, Fall Y/Y
HCA Healthcare reported second-quarter 2020 adjusted earnings of $1.50 per share. The Zacks Consensus Estimate was of a loss of 94 cents per share. However, the bottom line declined 32.1% year over year due to lower admissions.
Quarterly Details
HCA Healthcare’s revenues of $11.1 billion beat the Zacks Consensus Estimate by 17.7%. However, the top line declined 12.2% from the year-ago period.
Same facility equivalent admissions tumbled 20.1% year over year while same facility admissions dropped 12.8% year over year. However, same facility revenue per equivalent admission grew 10% year over year.
Same facility inpatient surgeries and same facility outpatient surgeries slid 15.7% and 32.6%, respectively, year over year.
Patient volumes across most services contracted in April due to strict adherence to state and local policies for restricting the spread of COVID-19. However, patient volumes improved in May and June as states began to resume and allow non-emergent procedures.
Salaries and benefits, supplies and other operating expenses decreased 10.6% year over year to $9.2 billion.
Adjusted EBITDA totaled $2.6 billion, up 16.3% year over year.
As of Jun 30, 2020, HCA Healthcare operated 186 hospitals.
Financial Update
As of Jun 30, 2020, the company had cash and cash equivalents of $4.6 billion, total debt of $30.9 billion and total assets worth $48.7 billion.
In the reported quarter, capex came in at $745 million minus acquisitions.
Cash flows provided by operating activities were $8.72 billion, up 336.8% year over year.
As of Jun 30, 2020, HCA Healthcare had $7.72 billion of availability under its credit facilities.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 219.47% due to these changes.
VGM Scores
Currently, HCA has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, HCA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.