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HCA Healthcare (HCA) to Post Q1 Earnings: What's in the Cards?
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HCA Healthcare, Inc. (HCA - Free Report) is set to report its first-quarter 2023 results on Apr 21, before the opening bell.
What Do Estimates Say?
The Zacks Consensus Estimate for first-quarter earnings per share of $4.03 suggests a 2.2% decrease from the prior-year reported figure of $4.12, whereas our estimate indicates a 4.9% year-over-year decline. The consensus mark witnessed two upward estimate revisions in the past month against three downward movements. The consensus estimate for first-quarter revenues of $15.3 billion indicates a 2.4% increase from the year-ago reported figure, whereas our estimate suggests 1.8% year-over-year growth.
HCA Healthcare beat the consensus estimate for earnings in two of the prior four quarters and missed on two occasions, with the average surprise being 2.3%. This is depicted in the graph below:
Before we get into what to expect for the to-be-reported quarter in detail, let’s see how the company performed in the last quarter.
Q4 Earnings Rewind
In the last reported quarter, the hospital company’s adjusted earnings per share of $4.64 missed the Zacks Consensus Estimate by 3.1%. The quarterly results were hit by adversities inflicted by Hurricane Ian on one of HCA Healthcare’s facilities in Florida. HCA also suffered from an elevated expense level. Nevertheless, the downside was partly offset by improved patient admissions, which contributed a major chunk to the healthcare provider’s top line.
In the first quarter, HCA Healthcare’s revenues are expected to have gained on improved patient volumes. The Zacks Consensus Estimate and our estimate for equivalent admissions both indicate a 2.2% rise from the prior-year quarter’s reported figure.
The consensus mark and our estimate for the total number of hospitals are pegged at 182, flat with that reported a year ago. We expect emergency room visits to increase 4.4% year over year in the first quarter.
The consensus mark and our estimate for outpatient surgery cases Both suggest 1.5% year-over-year growth. Also, the consensus mark and our estimate for inpatient surgery cases both indicate a 0.1% year-over-year increase.
However, the Zacks Consensus Estimate and our estimate for equivalent patient days both suggest a 0.4% year-over-year decrease. The consensus mark and our estimate for revenue per equivalent admission both indicate a 0.4% decrease from that reported a year ago.
The Zacks Consensus Estimate and our estimate for the occupancy rate is pegged at 70.4% for the first quarter, indicating a decline from the year-ago reported level of 71.3%. Our estimate for total operating expenses suggests a 2.8% year-over-year increase due to higher supplies, salaries and benefits costs. These are likely to have positioned the company for a year-over-year decline in profit levels, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -2.03%. This is because the Most Accurate Estimate currently stands at $3.94 per share, lower than the Zacks Consensus Estimate of $4.03.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCA Healthcare currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for HCA Healthcare, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Bio-Rad’s earnings per share for the to-be-reported quarter is pegged at $3.24, which has been unchanged over the past week. BIO beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 27.5%.
AstraZeneca PLC (AZN - Free Report) has an Earnings ESP of +2.96% and a Zacks Rank #3.
The Zacks Consensus Estimate for AstraZeneca’s bottom line for the to-be-reported quarter is pegged at 85 cents per share, which witnessed one upward estimate revision in the past month against none in the opposite direction. AZN beat earnings estimates in all the past four quarters, the average surprise being 7.8%.
Amgen Inc. (AMGN - Free Report) has an Earnings ESP of +14.54% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Amgen’s bottom line for the to-be-reported quarter is pegged at $3.93 per share, which increased by a penny over the past month. AMGN beat earnings estimates in all the past four quarters, the average being 3.4%.
Image: Bigstock
HCA Healthcare (HCA) to Post Q1 Earnings: What's in the Cards?
HCA Healthcare, Inc. (HCA - Free Report) is set to report its first-quarter 2023 results on Apr 21, before the opening bell.
What Do Estimates Say?
The Zacks Consensus Estimate for first-quarter earnings per share of $4.03 suggests a 2.2% decrease from the prior-year reported figure of $4.12, whereas our estimate indicates a 4.9% year-over-year decline. The consensus mark witnessed two upward estimate revisions in the past month against three downward movements. The consensus estimate for first-quarter revenues of $15.3 billion indicates a 2.4% increase from the year-ago reported figure, whereas our estimate suggests 1.8% year-over-year growth.
HCA Healthcare beat the consensus estimate for earnings in two of the prior four quarters and missed on two occasions, with the average surprise being 2.3%. This is depicted in the graph below:
HCA Healthcare, Inc. Price and EPS Surprise
HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote
Before we get into what to expect for the to-be-reported quarter in detail, let’s see how the company performed in the last quarter.
Q4 Earnings Rewind
In the last reported quarter, the hospital company’s adjusted earnings per share of $4.64 missed the Zacks Consensus Estimate by 3.1%. The quarterly results were hit by adversities inflicted by Hurricane Ian on one of HCA Healthcare’s facilities in Florida. HCA also suffered from an elevated expense level. Nevertheless, the downside was partly offset by improved patient admissions, which contributed a major chunk to the healthcare provider’s top line.
Now let’s see how things have shaped up before the first-quarter earnings announcement.
Factors to Note
In the first quarter, HCA Healthcare’s revenues are expected to have gained on improved patient volumes. The Zacks Consensus Estimate and our estimate for equivalent admissions both indicate a 2.2% rise from the prior-year quarter’s reported figure.
The consensus mark and our estimate for the total number of hospitals are pegged at 182, flat with that reported a year ago. We expect emergency room visits to increase 4.4% year over year in the first quarter.
The consensus mark and our estimate for outpatient surgery cases Both suggest 1.5% year-over-year growth. Also, the consensus mark and our estimate for inpatient surgery cases both indicate a 0.1% year-over-year increase.
However, the Zacks Consensus Estimate and our estimate for equivalent patient days both suggest a 0.4% year-over-year decrease. The consensus mark and our estimate for revenue per equivalent admission both indicate a 0.4% decrease from that reported a year ago.
The Zacks Consensus Estimate and our estimate for the occupancy rate is pegged at 70.4% for the first quarter, indicating a decline from the year-ago reported level of 71.3%. Our estimate for total operating expenses suggests a 2.8% year-over-year increase due to higher supplies, salaries and benefits costs. These are likely to have positioned the company for a year-over-year decline in profit levels, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -2.03%. This is because the Most Accurate Estimate currently stands at $3.94 per share, lower than the Zacks Consensus Estimate of $4.03.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCA Healthcare currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for HCA Healthcare, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Bio-Rad Laboratories, Inc. (BIO - Free Report) has an Earnings ESP of +0.16% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Bio-Rad’s earnings per share for the to-be-reported quarter is pegged at $3.24, which has been unchanged over the past week. BIO beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 27.5%.
AstraZeneca PLC (AZN - Free Report) has an Earnings ESP of +2.96% and a Zacks Rank #3.
The Zacks Consensus Estimate for AstraZeneca’s bottom line for the to-be-reported quarter is pegged at 85 cents per share, which witnessed one upward estimate revision in the past month against none in the opposite direction. AZN beat earnings estimates in all the past four quarters, the average surprise being 7.8%.
Amgen Inc. (AMGN - Free Report) has an Earnings ESP of +14.54% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Amgen’s bottom line for the to-be-reported quarter is pegged at $3.93 per share, which increased by a penny over the past month. AMGN beat earnings estimates in all the past four quarters, the average being 3.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.