HCA Holdings Boosts 2014 Outlook As Q2 Results Top Estimates

(RTTNews) - Hospital operator HCA Holdings, Inc. (HCA) reported Tuesday a profit for the second quarter that increased from last year, reflecting improved revenues. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised earnings and revenue guidance for the full-year 2014.

The Nashville, Tennessee-based company reported net income of $483 million or $1.07 per share for the second quarter, higher than $423 million or $0.91 per share in the prior-year quarter.

Results for the latest quarter include losses on retirement of debt of $0.32 per share, and gains on sales of facilities of $0.02 per share. Excluding items, adjusted net income for the quarter was $619 million or $1.37 per share.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share for the quarter. Analysts' estimates typically excludes special items.

Revenues for the quarter increased 9.2 percent to $9.23 billion from $8.45 billion in the same quarter last year, topped eighteen Wall Street analysts' consensus estimate of $8.98 billion.

Same facility equivalent admissions increased 2.2 percent in the quarter, and same facility admissions grew 1.2 percent. Same facility revenue per equivalent admission increased 5.4 percent, and same facility emergency room visits improved 5.7 percent.

Same facility inpatient surgeries increased 1.0 percent, while same facility outpatient surgeries declined 0.3 percent.

Looking ahead to the fiscal 2014, the company raised adjusted earnings guidance to a range of $4.00 to $4.25 per share from the prior forecast range of $3.45 to $3.75 per share. The company also now projects revenues between $36.00 and $36.50 billion, up from the previous forecast between $35.50 billion and $36.50 billion.

Street is currently looking for full-year 2014 earnings of $3.70 per share, on annual revenues of $36.11 billion.

In Tuesday's regular trading session, HCA is currently trading at $64.68, up $1.03 or 1.62% on a volume of 1.73 million shares.