Why Hospital Operator HCA Healthcare's Shares Are Falling Today

HCA Healthcare Inc HCA shares are trading lower after the company reported mixed Q3 FY23 financial results and updated guidance.

The company reported revenue of $16.213 billion, exceeding the consensus of $15.822 billion.

Same facility admissions rose 3.4 Y/Y, and same facility equivalent admissions grew 4.1% Y/Y. 

Same facility emergency room visits were up 3.5% Y/Y, and same facility revenue per equivalent admission rose 3.6% Y/Y.

Adjusted EBITDA declined to $2.880 billion from $2.902 billion a year ago.

EPS of $3.91 missed the consensus of $3.99.

"During the quarter, most aspects of our business were positive, including continued solid demand for our services, which translated into strong revenue growth. However, our results were unfavorably impacted by our Valesco physician staffing joint venture, which performed below our expectations," said Sam Hazen, Chief Executive Officer. 

Cash flows provided by operating activities came in at $2.479 billion, vs $3.020 billion a year ago.

As of September 30, 2023, cash and cash equivalents stood at $891 million and total debt of $39.346 billion. 

Dividend: The Board of Directors declared a quarterly cash dividend per share of $0.60, payable on December 28, 2023, to stockholders of record as of December 14, 2023.

In Q3, HCA bought back shares worth $1.140 billion and had $1.685 billion worth of shares remaining under its authorization as of September 30, 2023. 

FY23 Outlook: HCA revised revenue outlook to $63.5 billion-$64.5 billion (from $63.25 billion-$64.75 billion) vs. $63.91 billion consensus and EPS to $17.80-$18.50 (from $17.70-$18.90) compared to the street view of $18.44.

Price Action: HCA shares are down 4.81% at $229.35 on the last check Tuesday.