Markets

HCA Holdings (HCA) Q4 Earnings Beat, Revenues Miss

HCA Holdings Inc . HCA reported fourth-quarter 2016 adjusted earnings of $1.89 per share, which beat the Zacks Consensus Estimate of $1.78 by 6.2%. Earnings also grew 11.8% year over year on higher revenues.

For full-year 2016, adjusted earnings per share came in at $6.87, up 23.6% year over year.

Revenues increased 3.8% year-over-year to $10.64 billion. However, the top line missed the Zacks Consensus Estimate of $10.69 billion.

Revenues for the year ended Dec 31, 2016 totaled $41.49 billion, up 4.6% year over year from $39.68 billion in 2015.

For the quarter ended Dec 31, 2016, the provision for doubtful accounts declined 19.4% year over year to $865 million.

Quarter Details

During the fourth quarter, salaries and benefits, supplies and other operating expenses increased 4% year over year to $8.45 billion.

Same facility equivalent admissions inched up 1.5%, while same facility admissions increased 1.6%. Same facility emergency room (ER) visits rose 1.6% year over year.

In-patient surgeries were up 1.4%, while outpatient surgeries were down 0.6% in the fourth quarter, on a same facility basis.

Same facility revenue per equivalent admission grew 1.9%.

Same facility operating expense per equivalent admission increased 2.8% from the prior-year quarter.

As of Dec 31, 2016, HCA Holdings operated 170 hospitals and 118 freestanding surgery centers.

Financial update

HCA Holdings exited 2016 with cash and cash equivalents of $646 million, total debt of $31.376 billion, and total assets of $33.758 billion.

During the fourth quarter, capital expenditures - excluding acquisitions - totaled $876 million.

Cash flows from operating activities totaled $1.699 billion compared with $1.558 billion in the year-ago quarter.

Share Repurchase and Dividend Update

During the fourth quarter, HCA Holdings repurchased 7.261 million shares of its common stock for $538 million.

The company had 370.536 million shares outstanding as of Dec 31, 2016 compared with 398.739 million shares outstanding as of Dec 31, 2015.

HCA Holdings, Inc. Price, Consensus and EPS Surprise

HCA Holdings, Inc. Price, Consensus and EPS Surprise | HCA Holdings, Inc. Quote

Guidance for 2017

For 2017, revenues are expected in the range of $43 billion to $44 billion, while adjusted EBITDA per share is forecast in the range of $8.40 to $8.70.

Adjusted earnings per diluted share are projected in the range of $7.20-$7.60 per share.

Capital expenditure is projected to be approximately $2.9 billion.

Zacks Rank and Stocks to Consider

HCA Holdings presently carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Some better-ranked stocks from the medical sector include UnitedHealth Group, Inc. UNH , WellCare Health Plans, Inc. WCG and Universal Health Services, Inc. UHS . All of these stocks hold a Zacks Rank #2 (Buy).

UnitedHealth Group, that released its fourth earnings on Jan 17, handily beat our expectations.

WellCare and Universal Health are expected to release fourth-quarter earnings on Feb 7 and Feb 23, respectively.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

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

UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

WellCare Health Plans, Inc. (WCG): Free Stock Analysis Report

Universal Health Services, Inc. (UHS): Free Stock Analysis Report

HCA Holdings, Inc. (HCA): 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.


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

In This Story

HCA UHS UNH

Other Topics

Earnings 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