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HCA Healthcare, Inc. (HCA - Free Report) reported a second-quarter 2024 adjusted earnings per share (EPS) of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year.
Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.
The strong quarterly results benefited from rising admissions and a higher number of inpatient and outpatient surgeries, which contributed substantially to the top line of HCA Healthcare. However, rising salaries and benefits expenses partially offset the positives.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
Same-facility equivalent admissions increased 5.2% year over year in the second quarter, while same-facility admissions grew 5.8% year over year. Both metrics beat consensus estimate by 1.6%.
Same-facility revenue per equivalent admission rose 4.4% year over year in the quarter under review and surpassed the consensus estimate by 1.4%.
Same-facility inpatient surgeries grew 2.6% year over year and beat our growth estimate of 1.3%. Same-facility outpatient surgeries declined 2.1% year over year and lagged our growth estimate of 0.7%. Additionally, same-facility emergency room visits rose 5.5% year over year in the second quarter and beat our growth estimate of 4.3%.
Salaries and benefits, supplies and other operating expenses of $13.9 billion escalated 8.9% year over year and came higher than our estimate of $13.8 billion.
Adjusted EBITDA improved 16.2% year over year to $3.6 billion in the quarter under review.
HCA Healthcare operated 188 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Jun 30, 2024.
Financial Update (as of Jun 30, 2024)
HCA Healthcare exited the second quarter with cash and cash equivalents of $831 million, down from the 2023-end level of $935 million. It had a leftover capacity of $7.1 billion under its credit facilities at the second-quarter end.
Total assets of $57.4 billion increased from $56.2 billion at 2023-end.
Long-term debt, excluding debt issuance costs and discounts, declined to $36.3 billion from $37.2 billion at the end of 2023.
Capital expenditures were $1.28 billion minus acquisitions during the quarter under review.
Cash Flows
HCA Healthcare generated cash from operations of $2 billion in the second quarter of 2024, which declined 20.4% year over year.
Capital Deployment Update
HCA bought back shares worth $1.4 billion in the second quarter. It had a leftover capacity of $4.2 billion under its buyback authorization as of Jun 30, 2024.
The board of directors declared its quarterly cash dividend of 66 cents per share, which will be paid on Sep 30, 2024, to its shareholders of record as of Sep 16.
2024 View Raised
Annual revenues are presently estimated to be between $69.8 billion and $71.8 billion in 2024. The midpoint of the outlook indicates an 8.9% rise from the 2023 reported figure.
Management is currently projecting adjusted EBITDA to be in the range of $13.8-$14.3 billion for 2024. The midpoint of the outlook suggests 10.2% growth from the 2023 figure.
Net income attributable to HCA Healthcare is presently anticipated to be between $5.7 billion and $6 billion. The midpoint of the outlook suggests 11.6% growth from the 2023 figure.
EPS is currently forecasted to be in the $21.60-$22.8 band for 2024. The midpoint of the guidance implies a 17% rise from the 2023 figure.
Capital expenditures, excluding acquisitions, are expected to be around $5.1-$5.3 billion.
Here are three other companies from the Medical space that are likely to report their respective quarterly earnings soon.
Amphastar Pharmaceuticals, Inc. (AMPH - Free Report) has an Earnings ESP of +3.32% and carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Amphastar Pharmaceuticals’ bottom line for the to-be-reported quarter indicates 20% year-over-year growth. AMPH beat earnings estimates in each of the past four quarters, the average surprise being 28.6%.
Encompass Health Corporation (EHC - Free Report) has an Earnings ESP of +0.36% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Encompass Health’s bottom line for the to-be-reported quarter indicates 6.3% year-over-year growth. EHC beat earnings estimates in each of the past four, with an average surprise of 18.7%.
Universal Health Services, Inc. (UHS - Free Report) has an Earnings ESP of +8.65% and carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Universal Health Service’s EPS for the to-be-reported quarter indicates a 33.2% year-over-year jump. UHS beat earnings estimates in three of the past four quarters, missed once, the average surprise being 8.1%.
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HCA Healthcare (HCA) Beats on Q2 Earnings, Ups 2024 EPS View
HCA Healthcare, Inc. (HCA - Free Report) reported a second-quarter 2024 adjusted earnings per share (EPS) of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year.
Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.
The strong quarterly results benefited from rising admissions and a higher number of inpatient and outpatient surgeries, which contributed substantially to the top line of HCA Healthcare. However, rising salaries and benefits expenses partially offset the positives.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
Quarterly Details
Same-facility equivalent admissions increased 5.2% year over year in the second quarter, while same-facility admissions grew 5.8% year over year. Both metrics beat consensus estimate by 1.6%.
Same-facility revenue per equivalent admission rose 4.4% year over year in the quarter under review and surpassed the consensus estimate by 1.4%.
Same-facility inpatient surgeries grew 2.6% year over year and beat our growth estimate of 1.3%. Same-facility outpatient surgeries declined 2.1% year over year and lagged our growth estimate of 0.7%. Additionally, same-facility emergency room visits rose 5.5% year over year in the second quarter and beat our growth estimate of 4.3%.
Salaries and benefits, supplies and other operating expenses of $13.9 billion escalated 8.9% year over year and came higher than our estimate of $13.8 billion.
Adjusted EBITDA improved 16.2% year over year to $3.6 billion in the quarter under review.
HCA Healthcare operated 188 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Jun 30, 2024.
Financial Update (as of Jun 30, 2024)
HCA Healthcare exited the second quarter with cash and cash equivalents of $831 million, down from the 2023-end level of $935 million. It had a leftover capacity of $7.1 billion under its credit facilities at the second-quarter end.
Total assets of $57.4 billion increased from $56.2 billion at 2023-end.
Long-term debt, excluding debt issuance costs and discounts, declined to $36.3 billion from $37.2 billion at the end of 2023.
Capital expenditures were $1.28 billion minus acquisitions during the quarter under review.
Cash Flows
HCA Healthcare generated cash from operations of $2 billion in the second quarter of 2024, which declined 20.4% year over year.
Capital Deployment Update
HCA bought back shares worth $1.4 billion in the second quarter. It had a leftover capacity of $4.2 billion under its buyback authorization as of Jun 30, 2024.
The board of directors declared its quarterly cash dividend of 66 cents per share, which will be paid on Sep 30, 2024, to its shareholders of record as of Sep 16.
2024 View Raised
Annual revenues are presently estimated to be between $69.8 billion and $71.8 billion in 2024. The midpoint of the outlook indicates an 8.9% rise from the 2023 reported figure.
Management is currently projecting adjusted EBITDA to be in the range of $13.8-$14.3 billion for 2024. The midpoint of the outlook suggests 10.2% growth from the 2023 figure.
Net income attributable to HCA Healthcare is presently anticipated to be between $5.7 billion and $6 billion. The midpoint of the outlook suggests 11.6% growth from the 2023 figure.
EPS is currently forecasted to be in the $21.60-$22.8 band for 2024. The midpoint of the guidance implies a 17% rise from the 2023 figure.
Capital expenditures, excluding acquisitions, are expected to be around $5.1-$5.3 billion.
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.
Upcoming Releases
Here are three other companies from the Medical space that are likely to report their respective quarterly earnings soon.
Amphastar Pharmaceuticals, Inc. (AMPH - Free Report) has an Earnings ESP of +3.32% and carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Amphastar Pharmaceuticals’ bottom line for the to-be-reported quarter indicates 20% year-over-year growth. AMPH beat earnings estimates in each of the past four quarters, the average surprise being 28.6%.
Encompass Health Corporation (EHC - Free Report) has an Earnings ESP of +0.36% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Encompass Health’s bottom line for the to-be-reported quarter indicates 6.3% year-over-year growth. EHC beat earnings estimates in each of the past four, with an average surprise of 18.7%.
Universal Health Services, Inc. (UHS - Free Report) has an Earnings ESP of +8.65% and carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Universal Health Service’s EPS for the to-be-reported quarter indicates a 33.2% year-over-year jump. UHS beat earnings estimates in three of the past four quarters, missed once, the average surprise being 8.1%.