HCA's stock surges as hospital operator's quarterly results top expectations

By Eleanor Laise

Hospital giant raises full-year guidance amid growth in admissions, inpatient surgeries

HCA Healthcare Inc.'s stock (HCA) jumped more than 7% premarket on Tuesday after the hospital operator reported quarterly results that topped analysts' expectations and raised its full-year guidance.

Amid ongoing solid growth in admissions and inpatient procedures, HCA reported second quarter net income of $1.461 billion, or $5.53 per share, up from $1.193 billion, or $4.29 per share, a year earlier. The FactSet consensus was for earnings of $4.93 per share. Revenue totaled $17.492 billion in the quarter, up 10.3% from the year-earlier period and topping the FactSet consensus of $17.053 billion.

HCA boosted its full-year sales guidance to a range of $69.75 to $71.75 billion, up from $67.75 to $70.25 billion previously. The company now expects full-year earnings of $5.675 to $5.975 billion up from previous guidance of $5.2 to $5.6 billion.

The hospital giant owns and operates more than 180 hospitals and about 2,400 ambulatory care sites, including surgery centers, urgent care centers, and physician clinics.

The quarter's results "reflected strong demand for our services," HCA CEO Sam Hazen said in a statement. Same-facility admissions rose 5.8% from a year earlier, while same-facility emergency room visits rose 5.5%. Inpatient surgeries rose 2.6%, HCA said, although outpatient surgeries dropped 2.1% from a year earlier.

HCA is the first of three major hospital operators reporting earnings this week, with Tenet Healthcare Corp. (THC) and Universal Health Services Inc. (UHS) set to report results Wednesday. Expectations for the group are high, analysts say, as all signs have pointed to patients continuing to use a relatively high level of healthcare services.

HCA's stock has gained 20.2% in the year to date, while the S&P 500 SPX is up 16.7%.

-Eleanor Laise

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07-23-24 0812ET

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