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.
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.
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
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.
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