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HCA Holdings (HCA) Q4 Earnings Beat, Revenues Miss
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HCA Holdings, Inc. (HCA - Free Report) is one of the largest non-governmental operators of acute care hospitals in the U.S.
Scale of operations and diversified business mix provide the company a competitive advantage over its peers. Also, numerous acquisitions over the past many years have helped the company to gain a strong foothold in the industry.
The Nashville-based company has been working towards enhancing healthcare through the provision of reliable and superior quality services. Consistent generation of cash flows achieved through operational efficiency supported the company in maintaining financial flexibility.|
However, HCA Holdings suffers from rising level of bad debts. Pricing growth in the medium term is likely be affected as payor mix shift. Moreover, Donald Trump’s decision to repeal former President Barrack Obama's Affordable Care Act (ACA), that has casted an air of uncertainty on the hospital sector, also remains a major headwind for this company.
HCA Holdings has a decent history when it comes to earnings as the company has beaten estimates in the last four quarters, making for an average surprise of 10.16%.
Revenue: Operating revenues missed our estimate. Our consensus called for revenues of $10.69 billion, and the company reported revenues of $10.64 billion.
Key Stats to Note: Same facility revenue per equivalent admission increased 1.9%.
However, salaries and benefits, supplies and other operating expenses totaled $8.45 billion in the fourth quarter, up 4% year over year.
Operating cash flow was $5.6 million at the end of 2016, up 19.4% year over year.
For 2017, the company expects diluted earnings per share to be in the range of $7.20 to $7.60, Adjusted EBITDA to be in the range of $8.40 to $8.70 and revenues to be in the range of $43 billion to $44 billion.
Check back later for our full write up on this HCA Holdings earnings report later!
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HCA Holdings (HCA) Q4 Earnings Beat, Revenues Miss
HCA Holdings, Inc. (HCA - Free Report) is one of the largest non-governmental operators of acute care hospitals in the U.S.
Scale of operations and diversified business mix provide the company a competitive advantage over its peers. Also, numerous acquisitions over the past many years have helped the company to gain a strong foothold in the industry.
The Nashville-based company has been working towards enhancing healthcare through the provision of reliable and superior quality services. Consistent generation of cash flows achieved through operational efficiency supported the company in maintaining financial flexibility.|
However, HCA Holdings suffers from rising level of bad debts. Pricing growth in the medium term is likely be affected as payor mix shift. Moreover, Donald Trump’s decision to repeal former President Barrack Obama's Affordable Care Act (ACA), that has casted an air of uncertainty on the hospital sector, also remains a major headwind for this company.
HCA Holdings has a decent history when it comes to earnings as the company has beaten estimates in the last four quarters, making for an average surprise of 10.16%.
Currently, HCA Holdings holds a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: HCA Holdings beats on earnings. Our consensus called for EPS of $1.78, and the company reported EPS of $1.89.
HCA Holdings, Inc. Price and EPS Surprise
HCA Holdings, Inc. Price and EPS Surprise | HCA Holdings, Inc. Quote
Revenue: Operating revenues missed our estimate. Our consensus called for revenues of $10.69 billion, and the company reported revenues of $10.64 billion.
Key Stats to Note: Same facility revenue per equivalent admission increased 1.9%.
However, salaries and benefits, supplies and other operating expenses totaled $8.45 billion in the fourth quarter, up 4% year over year.
Operating cash flow was $5.6 million at the end of 2016, up 19.4% year over year.
For 2017, the company expects diluted earnings per share to be in the range of $7.20 to $7.60, Adjusted EBITDA to be in the range of $8.40 to $8.70 and revenues to be in the range of $43 billion to $44 billion.
Check back later for our full write up on this HCA Holdings earnings report later!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>