HCA Healthcare Prepares for Q4 Earnings Release Amid Market Challenges
HCA Healthcare, Inc. (HCA), with a market cap of $78.8 billion, stands as the largest non-governmental acute care hospital operator in the U.S. This Nashville-based company offers a diverse range of medical and surgical services, including behavioral health programs addressing psychiatric and substance abuse issues. The company is set to announce its fiscal Q4 earnings before the market opens on Friday, January 24.
Analysts Predict Modest Growth in Earnings
As the earnings report approaches, analysts project HCA will achieve a profit of $6.03 per share, showing a 2.2% increase from $5.90 per share during the same period last year. Historically, the company has outperformed Wall Street’s estimates in the last four quarters, with a 1.6% beat in the last reported quarter.
Future Earnings Expectations
Looking ahead to fiscal 2024, analysts anticipate HCA will deliver an EPS of $21.90, reflecting a 15.2% increase from $19.01 in fiscal 2023. For fiscal 2025, EPS is expected to rise by 13.1% year-over-year, reaching $24.77.
Stock Performance Compared to the Market
HCA has logged a 10.6% return over the past year; however, this falls short of the S&P 500 Index’s ($SPX) impressive 24.2% growth. Nevertheless, HCA’s stock has outpaced the Health Care Select Sector SPDR Fund’s (XLV) slight gains during the same timeframe.
Market Reaction and Adjusted Guidance
Despite a strong adjusted EPS of $5.05 in Q3, HCA’s shares fell by 8.9% on October 25. This drop followed the company’s revised full-year guidance, now suggesting they will land in the lower end of their revenue expectations. The adjustments came after HCA disclosed significant hurricane-related disruptions, resulting in a $50 million revenue loss in Q3 and estimated losses of up to $300 million in Q4. Operational issues at major facilities, including Mission Hospital and Largo Hospital, increased worries over extended recovery costs and revenue losses, negatively impacting investor confidence.
Analyst Ratings Indicate Cautious Optimism
Overall sentiment from analysts regarding HCA stock remains cautiously optimistic, with a consensus rating of “Moderate Buy”. Among 25 analysts covering HCA, there are 18 “Strong Buy” recommendations, one “Moderate Buy,” five “Holds,” and one “Strong Sell.” The average price target is estimated at $401.91, suggesting a potential upside of 29.1% from current stock levels.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
