HCA Holdings Q1 Profit Up, Adj. Earnings Miss Estimates; Backs FY View - Update

(RTTNews) - Hospital operator HCA Holdings, Inc. (HCA) Tuesday reported a higher first-quarter profit, reflecting about 5 percent growth in revenues. However, adjusted earnings, as well as revenues missed analysts' expectations. The company also reaffirmed its outlook for full year 2014.

"As expected, healthcare reform had minimal impact on the Company's first quarter results, however, we remain optimistic regarding the potential long-term benefits," said Milton Johnson, president and chief executive officer.

For the first quarter, net income attributable to the company increased to $347 million or $0.76 per share from $344 million or $0.74 per share in the prior year.

The firm said its recent-quarter results included gains on sales of facilities of $21 million or $0.03 per share, and also legal claim costs of $78 million or $0.11 per share.

Excluding items, adjusted earnings for the recent quarter totaled $0.84 per share, while the company posted $0.79 per share last year.

On average, 24 analysts polled by Thomson Reuters expected the company to earn $0.85 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 4.6 percent to $8.83 billion from $8.44 billion a year earlier. Analysts estimated revenues of $8.91 billion for the quarter.

The company noted that its same facility equivalent admissions declined 0.3 percent, and same facility admissions were down 0.6 percent from last year.

Meanwhile, same facility revenue per equivalent admission increased 3.7 percent, reflecting growth in case mix, or acuity, of 2.2 percent on a same facility basis, HCA said.

The company also reaffirmed its previously issued financial guidance ranges for 2014. Earlier, the company forecast 2014 adjusted earnings in a range of $3.45 to $3.75 per share, on revenues between $35.50 billion and $36.50 billion.

Street is currently looking for full-year 2014 earnings of $3.71 per share, on revenues of $36.22 billion for the year.

As of March 31, 2014, HCA operated 165 hospitals and 115 freestanding surgery centers.

HCA is currently trading at $50.91, down 3.23 percent.