We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will HCA Healthcare's (HCA) Earnings Beat Estimates in Q4?
Read MoreHide Full Article
We expect HCA Healthcare, Inc. (HCA - Free Report) to surpass expectations in fourth-quarter 2017 results before the opening bell on Jan 30.
The company surpassed estimates in one of the last four quarters, with an average positive surprise of 0.4%.
Why a Likely Positive Surprise?
Our proven model shows that HCA Healthcare has the right combination of two key ingredients to beat estimates.
Zacks ESP: HCA Healthcare has an Earnings ESP of +0.24%. A stock’s positive ESP raises confidence about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HCA Healthcare carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have significantly higher chances of an earnings beat.
Conversely, we caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Factors Driving the Better-Than-Expected Earnings
The company’s revenues have been rising over the past few years on the back of accretive acquisition of other hospitals. Continuing the trend, patient admissions are expected to grow further in the fourth quarter, driving the top line. The Zacks Consensus Estimate for total admissions, one of the key revenue drivers, (representing the total number of patients admitted to the company’s hospitals and is a general measure of inpatient volume) is 497,000, which reflects year-over-year growth of 4.6%. The Zacks Consensus Estimate for in patient revenue per admission is pegged at $13,433, up 2.5% year over year.
The company has been deploying capital in terms of share repurchases to enhance investors’ value. Share buyback programs taken up during the fourth quarter are likely to favor the bottom line, limiting the share count.
However, the company’s fourth-quarter results are expected to suffer from the industry-wide softness in volumes. Factors like payor initiatives to move volumes away from hospitals, rising deductibles and prevalence of high deductible health plans, and increased proportion of hospital care to be paid by consumers are likely to lower volumes.
Operating expenses per equivalent admission are also likely to increase in the fourth quarter driven by higher admissions.
Other Stocks to Consider
Here are some other companies from the health care sector that you may want to consider as these have the right combination of elements to beat on earnings in the fourth quarter:
Aetna, Inc. is also set to report earnings results on Jan 30 with an Earnings ESP of +0.27% and a Zacks Rank #3.
Anthem Inc. has an Earnings ESP of +1.29% and a Zacks Rank #1. The company is set to report financial results on Jan 31.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Will HCA Healthcare's (HCA) Earnings Beat Estimates in Q4?
We expect HCA Healthcare, Inc. (HCA - Free Report) to surpass expectations in fourth-quarter 2017 results before the opening bell on Jan 30.
The company surpassed estimates in one of the last four quarters, with an average positive surprise of 0.4%.
Why a Likely Positive Surprise?
Our proven model shows that HCA Healthcare has the right combination of two key ingredients to beat estimates.
Zacks ESP: HCA Healthcare has an Earnings ESP of +0.24%. A stock’s positive ESP raises confidence about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HCA Healthcare, Inc. Price and EPS Surprise
HCA Healthcare, Inc. Price and EPS Surprise | HCA Healthcare, Inc. Quote
Zacks Rank: HCA Healthcare carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have significantly higher chances of an earnings beat.
Conversely, we caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Factors Driving the Better-Than-Expected Earnings
The company’s revenues have been rising over the past few years on the back of accretive acquisition of other hospitals. Continuing the trend, patient admissions are expected to grow further in the fourth quarter, driving the top line. The Zacks Consensus Estimate for total admissions, one of the key revenue drivers, (representing the total number of patients admitted to the company’s hospitals and is a general measure of inpatient volume) is 497,000, which reflects year-over-year growth of 4.6%. The Zacks Consensus Estimate for in patient revenue per admission is pegged at $13,433, up 2.5% year over year.
The company has been deploying capital in terms of share repurchases to enhance investors’ value. Share buyback programs taken up during the fourth quarter are likely to favor the bottom line, limiting the share count.
However, the company’s fourth-quarter results are expected to suffer from the industry-wide softness in volumes. Factors like payor initiatives to move volumes away from hospitals, rising deductibles and prevalence of high deductible health plans, and increased proportion of hospital care to be paid by consumers are likely to lower volumes.
Operating expenses per equivalent admission are also likely to increase in the fourth quarter driven by higher admissions.
Other Stocks to Consider
Here are some other companies from the health care sector that you may want to consider as these have the right combination of elements to beat on earnings in the fourth quarter:
Centene Corp. (CNC - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 1. The company is set to report earnings on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aetna, Inc. is also set to report earnings results on Jan 30 with an Earnings ESP of +0.27% and a Zacks Rank #3.
Anthem Inc. has an Earnings ESP of +1.29% and a Zacks Rank #1. The company is set to report financial results on Jan 31.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>