HCA's Prelim Results Exhibit Growth - Analyst Blog
July 18 2013 - 1:00PM
Zacks
HCA Holdings, Inc. (HCA) announced its
preliminary financial results for the second quarter of 2013. The
company’s net income is projected at 91 cents per share, up from 85
cents per share in the second quarter of 2012.
HCA expects revenues of $8.45 billion in the second quarter of
2013, up 4.2% from $8.11 billion in the year-ago quarter. However,
expected revenues significantly lag the Zacks Consensus Estimate of
$9.51 billion.
HCA’s adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) stand at $1.689 billion, up from $1.569
billion in the prior-year quarter. Income before taxes is $806
million, surging from $699 million in the year-ago quarter.
Depreciation and amortization expense is estimated to be $425
million and interest expense to be $462 million in the second
quarter of 2013.
Meanwhile, same facility admissions increased 1.3% year over
year in the second quarter of 2013 and same facility equivalent
admissions inched up 1.1%. Same facility revenue per equivalent
admission is expected to grow 2.9% from the second quarter of
2012.
However, these preliminary results are open to change, as HCA’s
quarterly financial and accounting procedures are not yet over. The
results are expected to be revealed on Aug 1, 2013. The Zacks
Consensus Estimate for HCA’s second-quarter 2013 earnings per share
stands at 78 cents, down 8.3% over the year-ago quarter.
HCA affirmed its guidance for revenues of $33.5–$34.5 billion in
2013. The adjusted EBITDA guidance for the year was affirmed at
$6.25–$6.5 billion and adjusted EPS guidance at $3.00–3.30.
Further, capital expenditure guidance was also affirmed at $2
billion.
HCA, in the first quarter of 2013, fell short of the Zacks
Consensus Estimate on both counts. We cannot conclusively say
whether the company will lag or beat the earnings estimate in the
second quarter. This is because Expected Surprise Prediction or ESP
(Read: Zacks Earnings ESP: A Better Method) is -2.56% but the stock
carries Zacks Rank #3 (Hold) (Stocks with Zacks Ranks of #1, #2 and
#3 have a significantly higher chance of beating earnings).
Other companies worth considering in the medical sector are
Health Net Inc. (HNT) – Zacks Rank #1 (Strong
Buy), VCA Antech Inc. (WOOF) – Zacks Rank #2
(Buy), Acadia Healthcare Company, Inc. (ACHC) –
Zacks Rank #2 (Buy).
ACADIA HEALTHCR (ACHC): Free Stock Analysis Report
HCA HOLDINGS (HCA): Free Stock Analysis Report
HEALTH NET INC (HNT): Free Stock Analysis Report
VCA ANTECH INC (WOOF): Free Stock Analysis Report
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