HCA Healthcare Sees Strong Earnings Ahead: Analysts Forecast Impressive Q3 Results
Nashville, Tennessee-based HCA Healthcare, Inc. (HCA) is the largest private operator of acute care hospitals in the U.S. With a market capitalization of $103.3 billion, HCA Healthcare runs hospitals and related healthcare services, providing a variety of medical and surgical treatments. Investors are eagerly awaiting the company’s Q3 earnings report set to be released before the market opens on Friday, Oct. 25.
In anticipation of the earnings announcement, analysts predict that HCA will report a profit of $4.98 per share, reflecting a 27.4% increase from $3.91 per share in the same quarter last year. The company has beaten Wall Street’s adjusted earnings per share (EPS) estimates in three out of the last four quarters, with one miss in the previous year. For the last reported quarter, HCA’s adjusted EPS rose by 28.2% year-over-year to $5.50, surpassing consensus estimates by 10.7%.
Future Earnings Projections Show Continued Growth
Looking forward to fiscal 2024, analysts expect HCA to achieve an adjusted EPS of $22.48, an increase of 18.3% from $19.01 in fiscal 2023. Projections for fiscal 2025 suggest an 11% annual growth to reach an adjusted EPS of $24.95.
Strong Year-to-Date Performance Outshines Market Competitors
HCA’s stock has surged 45.8% this year, significantly outpacing the S&P 500 Index, which has seen a gain of 21.9%, and the Health Care Select Sector SPDR Fund (XLV), which has increased by 12.8% over the same period.
Recent Earnings Report Boosts Stock Confidence
After the release of its robust Q2 earnings on July 23, HCA’s shares increased by 4.6% and continued to perform well for the subsequent seven trading sessions. The company reported a 10.3% year-over-year revenue growth to $17.5 billion, mainly due to increased admissions and higher revenue per admission. Additionally, the net margin grew by 83 basis points to 8.4%, helping elevate net income to shareholders by 22.5%, totaling $1.5 billion.
Analysts Favor HCA Stock
HCA Healthcare stock has garnered a solid consensus opinion, rated as a “Strong Buy.” Among 24 analysts covering HCA, 18 recommend a “Strong Buy,” while two suggest a “Moderate Buy” and four recommend a “Hold” rating.
The mean price target stands at $398.77, indicating a potential upside of 1.1% based on current prices.
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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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