HCA Holdings Up on Q1 Preliminary Results, Raised Guidance - Analyst Blog

Shares of HCA Holdings, Inc. HCA gained in the last two trading sessions after the company announced its solid first-quarter 2015 preliminary results as well as increased its full-year guidance.

For the first quarter, HCA Holdings expects revenues to increase 9.5% year over year to $9.675 billion along with pre-tax income surging 58.1% to $1.075 billion. Net income per share is also anticipated to rise to $1.35 compared with 76 cents in the year-ago quarter. The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to come in at $1.960 billion, higher than $1.644 billion in the prior-year quarter.

Same facility admissions, on the other hand, increased 5.1% year over year in the first quarter as against a 6.8% increase in the year-ago quarter. Same facility emergency room visits also rose 11.5% year over year.

Same facility revenue per equivalent admission is, hence, projected to increase about 1.6% year over year in the first quarter.

HCA Holdings first-quarter preliminary results beat expectations on increased admissions along with favorable volume and payor trends in the company’s core operations. Based on the solid results the medical hospital stock has further raised its guidance.

2015 Guidance

HCA Holdings raised its adjusted earnings per share (EPS) guidance for 2015 to $4.90-$5.30 from the previous guidance of $4.55–$4.95. The Zacks Consensus Estimate for 2015 is currently at $5.03, which is within the guided range

HCA Holdings’ revenue guidance is now projected between $39 billion and $40 billion, higher than $38.5–$39.5 billion guided earlier.

Additionally, the company expects Adjusted EBITDA in the range of $7.55–$7.85 billion, up from $7.35–$7.65 billion guided earlier.

However, the capital expenditure is expected to remain unchanged at $2.4 billion.

Currently, HCA Holdings sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Other players from the same sector that warrant a look include Acadia Healthcare Company, Inc. ACHC, MEDNAX, Inc. MD and VCA Inc. WOOF. All of these stocks hold a Zacks Rank #2 (Buy).


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