HCA Beats Q3 Revenue Estimates, Financial Guidance Raised

The Nashville-based for-profit hospital operator's net income fell $147 million year-over-year.

HCA Healthcare reported revenues totaling nearly $12.7 billion during Q3, beating the company's estimates.

The Nashville-based for-profit hospital operator had been projected to post earnings per share (EPS) of $2.13 and $12.5 billion in revenues. The company topped the revenue metrics and reported an EPS of $2.15.  

In light of the positive earnings beat, the company is updating its year-end financial guidance, placing its EPS in a range between $10.30 and $10.65.

Related: HCA Misses on Key Financials, Stock Drops Sharply

Unlike the slide its stock took after the release of its Q2 earnings report, HCA's stock was trading up more than 3.5% Tuesday morning. 

Still, HCA contended with a year-over-year decline in net income, posting a quarterly profit of $612 million. That metric was down $147 million compared to Q3 2018.

Related: New Round of Medicare Readmission Penalties Hits 2,583 Hospitals

Overall, HCA's admissions grew by nearly 6% year-over-year, totaling 527,284 in Q3. 

Same facility admissions and same facility equivalent admissions each rose by 3.2% and 4.2%, respectively, while same facility emergency room visits increased 4.1% compared to this time last year.

HCA's inpatient and outpatient surgery cases grew at a faster rate than its same facility admissions, increasing 4.4% and 5.2%, respectively. 

ADDITIONAL HCA Q3 EARNINGS REPORT HIGHLIGHTS:

• Salaries, benefits, supplies, and other operating expenses accounted for 82% of revenues, up slightly compared to 81.8% this time last year.
• The company repurchased $239 million worth of stock in Q3 and has just over $1.51 billion remaining under its existing repurchase agreement.  
• The company also declared a quarterly cash dividend of $0.40 per share to be paid on December 27.
• By the end of Q3, HCA was still operating 184 hospitals.

For complete financial information, review HCA Healthcare's filing with the Securities and Exchange Commission.