HCA Healthcare, Inc. HCA reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line advanced 5.4% year over year.
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Revenues rose 5.7% year over year to $18.3 billion. The top line beat the consensus mark by 1.1%
The fourth-quarter earnings benefited from higher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
HCA’s Quarterly Details
Same-facility equivalent admissions improved 3.1% year over year in the fourth quarter while same-facility admissions advanced 3% year over year. However, the metrics fell short of our growth estimates of 4.7% and 4.9%.
Same-facility revenue per equivalent admission grew 2.9% year over year and beat our growth estimate of 2.7%.
Same-facility inpatient surgeries increased 2.8% year over year and outpaced our growth estimate of 2.1%. Same-facility outpatient surgeries dipped 1.3% year over year. Additionally, same-facility emergency room visits rose 2.4% year over year in the fourth quarter.
Salaries and benefits, supplies and other operating expenses increased 6.3% year over year to $14.6 billion and were higher than our estimate of $14.4 billion.
Adjusted EBITDA of $3.7 billion improved 2.6% year over year .
HCA Healthcare operated 190 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Dec. 31, 2024.
HCA’s Financial Update (as of Dec. 31, 2024)
HCA Healthcare exited the fourth quarter with cash and cash equivalents of $1.9 billion, which more than doubled from the 2023-end level. It had a leftover capacity of approximately $8 billion under its credit facilities at the fourth-quarter end.
Total assets of $59.5 billion increased 5.9% from the figure at 2023-end.
Long-term debt, excluding debt issuance costs and discounts, were $38.3 billion, up 3.1% from the figure as of Dec. 31, 2023.
Capital expenditures were $1.3 billion minus acquisitions during the quarter.
HCA’s Cash Flows
HCA Healthcare generated $10.5 billion in cash from operations in 2024, which advanced 11.5% from the 2023 figure.
HCA Healthcare’s Capital Deployment Update
HCA bought back shares worth $1.7 billion in the fourth quarter. It had a leftover capacity of $764 million under its buyback authorization as of Dec. 31, 2024. Management also approved a new share repurchase program of $10 billion.
The board of directors also sanctioned a 9.1% increase in its quarterly cash dividend. The hiked dividend amounted to 72 cents per share, which will be paid on March 31, 2025, to its shareholders of record as of March 17.
2024 Results for HCA
HCA Healthcare’s revenues advanced 8.7% year over year to $70.6 billion. Full-year adjusted EPS of $21.96 rose 15.5% year over year. Adjusted EBITDA improved 9.1% year over year to $13.9 billion.
2025 Guidance Unveiled
Annual revenues are presently anticipated to be between $72.8 billion and $75.8 billion in 2025. The midpoint of the outlook indicates a 5.2% rise from the 2024 figure.
Management currently estimates adjusted EBITDA to be in the range of $14.3-$15.1 billion. The midpoint of the outlook indicates 5.9% growth from the 2024 figure.
Net income attributable to HCA Healthcare is presently expected to be between $5.85 billion and $6.29 billion.
EPS is forecasted to be in the $24.05-$25.85 band. The midpoint of the guidance implies a 13.6% rise from the 2024 figure.
Capital expenditures, excluding acquisitions, are expected to be within $5-$5.2 billion.
HCA’s Zacks Rank
HCA Healthcare currently has a Zacks Rank #4 (Sell).
Other Medical Sector Releases
Of the Medical sector players that have reported fourth-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported fourth-quarter 2024 adjusted EPS of $6.81, which surpassed the Zacks Consensus Estimate of $6.71. The bottom line advanced 10.6% year over year. Revenues rose 6.8% year over year to $100.8 billion. However, the top line missed the consensus mark by 1.4%. UnitedHealth’s operating earnings grew 1.1% year over year to $7.8 billion in the fourth quarter. Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, advanced 4.7% year over year to $74.1 billion .
Revenues in the Optum business line were $65.1 billion, which rose 9.4% year over year. Optum’s earnings from operations climbed to $4.8 billion from $4.6 billion a year ago. The UnitedHealthcare business catered to 50.68 million people as of Dec. 31, 2024, which fell 3.9% year over year.
Elevance Health reported fourth-quarter 2024 adjusted EPS of $3.84, which surpassed the Zacks Consensus Estimate by 1.1%. However, the bottom line deteriorated 31.7% year over year. Operating revenues of $45 billion rose 6% year over year. Moreover, the top line beat the consensus mark by a whisker. Medical membership of Elevance Health was around 45.7 million as of Dec. 31, 2024, which slipped 2% year over year. Premiums increased 3.2% year over year to $36.2 billion.
Product revenues of $6.7 billion increased 24.5% year over year. The Health Benefits segment reported operating revenues of $37.6 billion, which increased 3% year over year. Operating gain declined 75% year over year to $0.2 billion, lower than the consensus mark of $0.4 billion. The Carelon’s segment’s operating revenues amounted to $14.7 billion, which rose 19% year over year.
An Upcoming Medical Sector Release
Here is a company from the Medical space that is likely to report its quarterly earnings soon.
Merit Medical Systems, Inc. MMSI is scheduled to report fourth-quarter 2024 earnings on Feb. 25. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MMSI’s fourth-quarter earnings is pegged at 83 cents per share, indicating a 2.5% rise from the prior-year quarter’s number. Merit Medical Systems’ earnings beat estimates in each of the trailing four quarters, the average surprise being 6.42%.
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