HCA Healthcare Reports Earnings Amid Mixed Stock Performance
Valued at $82.3 billion by market cap, HCA Healthcare, Inc. (HCA) is a major player in the healthcare industry, with a focus on running hospitals and outpatient facilities throughout the U.S. Headquartered in Nashville, Tennessee, the company provides a wide array of medical services and innovative care solutions to meet various patient needs through its vast network of hospitals, clinics, and care facilities.
Stock Performance: HCA vs. Market
Over the last year, shares of HCA Healthcare have underperformed when compared to the broader market. During the past 52 weeks, HCA’s stock gained 28.4%, while the S&P 500 Index ($SPX) saw a return of 31%. In 2024, HCA has risen 20%, in contrast to SPX’s 25.2% increase year-to-date.
However, when looking more closely, HCA has outperformed the SPDR S&P Health Care Services ETF (XHS), which has recorded a gain of 11.8% over the last year and 7.4% year-to-date.
Q3 Earnings Report: Strong Financials Amid Stock Drop
On October 25, HCA Healthcare’s stock fell 8.9% after its Q3 earnings report. The company reported revenue of $17.49 billion, meeting analyst expectations and showing a 7.9% year-over-year increase. Non-GAAP EPS was impressive at $5.50, surpassing the consensus estimate of $4.97.
Adjusted EBITDA for Q3 reached $3.26 billion, a rise from $2.88 billion in the same quarter last year, indicating ongoing operational strength despite the recent stock decline. The company has reaffirmed its 2024 guidance, predicting results at the lower end of the range due to the impact of hurricanes, with expected capital expenditures of $5 billion.
Analysts Optimistic About Future Growth
For the current fiscal year ending in December, analysts forecast HCA’s EPS to grow 15.6% to $21.97 on a diluted basis. The company has a strong track record of earnings surprises, having exceeded expectations in each of the last four quarters.
Among the 25 analysts covering HCA stock, the consensus rating stands at “Strong Buy.” This comes from 18 “Strong Buy” recommendations, one “Moderate Buy,” and six “Holds.”
This outlook represents a more positive sentiment than a month ago, which had 16 analysts recommending a “Strong Buy.”
On November 15, Bank of America Securities (BAC) analyst Joanna Gajuk reiterated a “Buy” rating for HCA Healthcare.
The average price target is set at $411.29, indicating a 26.6% potential increase from current prices. Meanwhile, the highest target of $460 suggests an ambitious upside of 41.5%.
On the date of publication, Rashmi Kumari 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 intended for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here. More news from Barchart
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