Yahoo Finance HCA Healthcare (HCA) Beats on Q1 Earnings, Ups '23 EPS View
HCA Healthcare, Inc. HCA reported first-quarter 2023 adjusted earnings of $4.93 per share, which surpassed the Zacks Consensus Estimate by 23.6%. Also, the bottom line climbed 19.7% year over year.
Its shares gained 6% in the pre-market trading session owing to the outperformance.
HCA’s revenues advanced 4.3% year over year to $15.6 billion. The top line beat the consensus mark by 2% and our estimate of $15.2 billion.
The quarterly results gained on the back of expanding patient volumes and increased surgeries which contribute a substantial amount to the top line of HCA Healthcare. However, the upside was partly offset by escalating salaries and benefits expenses.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
Quarterly Details
While same-facility equivalent admissions rose 7.5% year over year in the first quarter, same-facility admissions improved 4.4% year over year.
However, same-facility revenue per equivalent admission fell 2.3% year over year in the quarter under review due to greater COVID volumes and reimbursement in the previous year.
Same-facility inpatient surgeries and same-facility outpatient surgeries advanced 3.6% and 5.1%, respectively, year over year. Meanwhile, same-facility emergency room visits increased 10.3% year over year.
Salaries and benefits, supplies and other operating expenses increased 3.2% year over year to $12.4 billion and matched our estimate.
Adjusted EBITDA of $3.2 billion grew 7.7% year over year in the first quarter.
HCA Healthcare operated 180 hospitals and roughly 2,300 ambulatory sites of care across 20 states and the U.K. as of Mar 31, 2023.
Financial Update (as of Mar 31, 2023)
HCA Healthcare exited the first quarter with cash and cash equivalents of $842 million, which dropped 7.3% from the 2022-end level. It had a leftover capacity of $3.8 billion under its credit facilities at the first-quarter end.
Total assets of $52.7 billion inched up 0.5% from the figure at 2022 end.
Long-term debt, excluding debt issuance costs and discounts, amounted to $36.5 billion, down 3.3% from the figure as of Dec 31, 2022.
In the reported quarter, capital expenditures were at $1.2 billion minus acquisitions.
Cash Flows
HCA Healthcare generated cash from operations amounting to $1.8 billion in the first quarter, which surged 34.1% year over year.
Capital Deployment Update
HCA bought back shares worth $846 million in the first quarter. As of Mar 31, 2023, $3.7 billion was left under its buyback authorization.
The Board of Directors approved a quarterly cash dividend of 60 cents per share, which will be paid out on Jun 30, 2023, to its shareholders of record as of Jun 16, 2023.
2023 View Revised
Annual revenues are anticipated to stay between $62.5 billion and $64.5 billion, up from the prior view of $61.5-$63.5 billion. The midpoint of the revised outlook indicates growth of 5.5% from the 2022 reported figure.
Adjusted EBITDA is forecasted within $12.1 billion and $12.7 billion, higher than the previous guidance of $11.8-$12.4 billion. The midpoint of the updated outlook suggests 2.5% growth from the 2022 figure.
Management estimates net income attributable to HCA Healthcare to lie between $4.8 billion and $5.2 billion, up from the prior outlook of $4.5-$4.9 billion.
Earnings per share are predicted within the $17.25-$18.55 band, higher than the previous view of $16.40-$17.60. The midpoint of the revised guidance implies 6% growth from the 2022 figure.
Capital expenditures, excluding acquisitions, are expected at roughly $4.6 billion. The earlier outlook called for the metric to stay at roughly $4.3 billion.
Zacks Rank
HCA Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported first-quarter results so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Elevance Health, Inc. ELV and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported first-quarter 2023 adjusted earnings of $6.26 per share, which beat the Zacks Consensus Estimate of $6.24 and our estimate of $6.17. The bottom line improved from the $5.49 per share reported a year ago.
Revenues of UNH were $91.9 billion for the first quarter, which climbed from $80.1 billion a year ago. The top line beat the consensus mark of $89.3 billion and our estimate of $88.9 billion. The medical care ratio deteriorated 20 basis points year over year to 82.2% in the quarter under review.
Elevance Health’s first-quarter 2023 earnings of $9.46 per share beat the Zacks Consensus Estimate of $9.26 and our estimate of $9.22. Additionally, the bottom line advanced 15.5% year over year. ELV’s operating revenues improved 10.6% year over year to $41,898 million in the quarter under review.
The top line beat the consensus mark by 2.5% and came higher than our estimate of $40,766.5 million. Medical membership of Elevance Health, as of Mar 31, 2023, totaled 48.1 million, which rose 2.9% year over year in the first quarter.
Abbott Laboratories reported first-quarter 2023 adjusted earnings of $1.03 per share, which exceeded the Zacks Consensus Estimate by 5.1%. The adjusted figure declined from the prior-year quarter’s levels by 40.5%. First-quarter worldwide sales of $9.74 billion were down 18.1% year over year on a reported basis.
The top line exceeded the Zacks Consensus Estimate by 1.1%. ABT reported an adjusted operating profit of $2.00 billion in the quarter under review, down 41.6% year over year. Adjusted operating margin also, contracted 827 bps to 20.5%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
