Hospital Chain Operator HCA Healthcare Says Positive Q2 Earnings Reflect Strong Demand For Services, Issues Upbeat Annual Outlook

On Tuesday, HCA Healthcare Inc. HCA reported second-quarter revenues of $17.49 billion, up from $15.86 billion a year ago and beating the consensus of $17.05 billion.

The hospital chain reported adjusted EPS of $5.50, up from $4.29 a year ago, beating the consensus of $5.36.

“The company’s results for the second quarter were positive and reflected strong demand for our services,” said Sam Hazen, Chief Executive Officer of HCA Healthcare.

In the second quarter of 2024, same-facility admissions increased 5.8% year over year, while same-facility equivalent admissions increased 5.2%.

Same-facility emergency room visits increased by 5.5%. Same-facility inpatient surgeries increased 2.6%, and same-facility outpatient surgeries declined 2.1%.

Same facility revenue per equivalent admission increased by 4.4%

For the second quarter of 2024, adjusted EBITDA totaled $3.55 billion, compared to $3.06 billion a year ago.

Guidance: HCA Healthcare revised its fiscal year 2024 revenue guidance to $69.75 billion-$71.75 billion compared to prior guidance of $67.75 billion-$70.25 billion and the consensus of $69.79 billion.

The company forecasts 2024 EPS guidance of $21.60-22.80, up from the prior guidance of $19.70-$21.20 and the consensus of $20.98.

The company expects 2024 adjusted EBITDA of $12.85 billion-$13.55 billion versus the prior guidance of $13.75 billion-$14.25 billion.

Reuters reported that some analysts anticipate U.S. hospitals will benefit from an aging population, while others believe a shift also drives the increased demand for ambulatory care centers that don’t require overnight stays.

Over the past year, demand for medical care has surged as Americans, particularly older adults, address non-urgent procedures delayed during the pandemic.

According to a Reuters report citing Mizuho analyst, the largest for-profit hospital operator in the U.S. raised its forecast, meeting the high expectations for the quarter.

The stock of peers Universal Health Services Inc UHS and Community Health Systems Inc CYH also trade higher.

Price Action: HCA Healthcare stock is up 4.81% at $341.33 at last check on Tuesday.

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