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HCA Healthcare's (HCA) Q1 Earnings Beat, Revenues Up Y/Y

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HCA Healthcare, Inc. (HCA - Free Report) reported first-quarter 2021 adjusted earnings of $4.14 per share, which outpaced the Zacks Consensus Estimate by 23.6%. Moreover, the bottom line improved 77.7% year over year courtesy of higher revenues.

Quarterly Details

HCA Healthcare’s revenues of $14 billion surpassed the Zacks Consensus Estimate by 2.2%. Additionally, the top line increased 8.7% from the prior-year period.

While same facility equivalent admissions declined 6.5% year over year in the first quarter, same facility admissions decreased 4.2% year over year. Nevertheless, same facility revenue per equivalent admission improved 16.6% year over year on the back of favorable payer mix and rise in acuity of patients treated in the quarter.

While same facility inpatient surgeries dropped 5.4% year over year, same facility outpatient surgeries improved 2.3% year over year.

In the quarter, salaries and benefits, supplies and other operating expenses increased 2.6% year over year to $10.9 billion.

Adjusted EBITDA totaled $3.1 billion, which grew 38.7% year over year.

As of Mar 31, 2021, HCA Healthcare operated 186 hospitals.

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

HCA Healthcare, Inc. Price, Consensus and EPS Surprise

HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote

Financial Update

Total assets were $47.3 billion as of Mar 31, 2021, which dipped 0.4% from the level at 2020 end.

Total debt of $31.1 billion as of Mar 31, 2021 inched up 0.2% from the 2020-end level.

In the reported quarter, capex came in at $654 million minus acquisitions.

Net cash provided by operating activities amounted to $2 billion, which climbed 44.6% year over year.

Share Repurchase and Dividend Update

HCA Healthcare bought back shares worth $1.5 billion in the first quarter. As of Mar 31, 2021, the company’s repurchase authorization had $7.3 billion left.

Also, its board of directors announced a quarterly cash dividend of 48 cents per share on its common stock. The dividend is payable on Jun 30, 2021 to shareholders of record as on Jun 16, 2021.

2021 Guidance Updated

Concurrent with first-quarter results, the company revised full-year revenues, adjusted EBITDA and diluted earnings per share outlook for 2021.

For the current year, management anticipates revenues to be $54-$55.5 billion compared with the previous guidance of $53.5-$55.5 billion.

Adjusted EBITDA is forecasted to lie between $10.9 billion and $11.4 billion, up from the prior estimate of $10.3-$10.9 billion.

In 2021, the company’s EPS (diluted) is expected to be $13.3-$14.3, up from the previous guidance of $12.1-$13.1.

However, the guidance for capex of the company remained unchanged at around $3.7 billion for this year.

Zacks Rank

HCA Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Among other players from the medical space that have reported first-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Anthem, Inc. beat estimates.

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