Markets

HCA Healthcare (HCA) to Report Q3 Earnings: What's in Store?

HCA Healthcare, Inc. HCA is scheduled to release third-quarter 2020 results on Oct 26. In the second quarter, the company had reported adjusted earnings of $1.50 per share, against the Zacks Consensus Estimate of a loss of 94 cents. However, the bottom line declined 32.1% year over year due to lower patient admissions.

Factors to Note

The company’s third-quarter top line is expected to have benefited from gradual rise in patient volumes and resumption of non-emergent procedures following the easing of restrictions imposed by the government to curb the COVID-19 spread. The Zacks Consensus Estimate for HCA Healthcare’s revenues stands at $12.8 billion, suggesting growth of 0.9% from the prior-year quarter.

There are a number of the company’s outpatient facilities, which have started operating once again. This, in turn, is likely to have provided a boost to patient admissions in the to-be-reported quarter. While the Zacks Consensus Estimate for admissions indicates an improvement of 4% from the year-ago reported figure, the same for equivalent admissions suggests a decline of 2.6% year over year.

The company’s cost-cutting efforts are likely to have led to a decline in salaries and benefits, supplies and other operating expenses, which in turn, might have benefited the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for earnings per share in the third quarter is pegged at $2.69 per share. This figure indicates year-over-year improvement of 20.6% from the prior-year quarter.

Nonetheless, the consensus mark for the total number of hospitals suggests an improvement of 1.1% from the year-earlier reported figure.

The consensus estimate for third-quarter patient days indicates a rise of 5.8% from the year-ago quarter.

The consensus mark for occupancy stands at 54%, indicating a decline from the average of 57% in third-quarter 2019.

Despite several cost-cutting efforts, the company’s third-quarter performance is likely to have suffered from elevated expenses owing to operating costs and substantial growth-related investments. 

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for HCA Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: HCA Healthcare has an Earnings ESP of -25.71%. This is because the Most Accurate Estimate of $1.93 is pegged lower than the Zacks Consensus Estimate of $2.59. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in their upcoming releases.

Horizon Therapeutics Public Limited Company HZNP has an Earnings ESP of +5.58% and a Zacks Rank of 2, at present. The company is slated to announce third-quarter 2020 earnings on Nov 2.

Teladoc Health, Inc. TDOC has an Earnings ESP of +9.77% and a Zacks Rank #3. The company is scheduled to release third-quarter 2020 earnings on Oct 28.

Alexion Pharmaceuticals, Inc. ALXN has an Earnings ESP of +0.84% and a Zacks Rank #3. The company is scheduled to release third-quarter 2020 earnings on Oct 29.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


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
 
Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
 
HCA Healthcare, Inc. (HCA): Free Stock Analysis Report
 
Horizon Therapeutics Public Limited Company (HZNP): Free Stock Analysis Report
 
Teladoc Health, Inc. (TDOC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More