HCA Holdings Q2 Results Beat View; Sees 2015 Earnings Near High End Of Range

(RTTNews) - Hospital operator HCA Holdings, Inc. (HCA) on Wednesday reported a 5 percent increase in profit for the second quarter from last year on higher revenues that were helped by increased admissions.

Both revenue and adjusted earnings for the quarter beat analysts' expectations. Looking ahead to fiscal 2015, the company now expects adjusted earnings near the high end of its previous guidance range.

The Nashville, Tennessee-based company's second-quarter attributable net income increased to $507 million or $1.18 per share from $483 million or $1.07 per share in the previous-year quarter.

The latest quarter's results include losses on retirement of debt of $0.18 per share and losses on sales of facilities of $0.01 per share.

Excluding these items, net income for the quarter was $1.37 per share, the same as in the year-ago period. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 7 percent to $9.90 billion from $9.23 billion in the year-ago period. Analysts had a consensus revenue estimate of $9.82 billion.

Same facility admissions for the quarter increased 4.1 percent, while same facility equivalent admissions increased 4.9 percent. Same facility emergency room visits improved 7.4 percent.

Same facility revenue per equivalent admission increased 1.2 percent. After adjusting the year-ago period revenues to exclude the impact of the $142 million adjustment to increase revenues related to the Texas Medicaid Waiver Program, same facility revenue per equivalent admission increased 2.8 percent in the latest quarter.

Looking ahead to fiscal 2015, HCA now expects adjusted earnings per share near the high-end of its previously issued guidance range of $4.90 to $5.30 per share and affirmed its outlook for revenues of $39.0 billion to $40.0 billion.

The company said its full-year guidance no longer assumes a $70 million reduction in Medicaid revenues related to the Texas Medicaid Waiver Program.

The Street expects earnings of $5.28 per share for the year on revenues of $39.53 billion.

HCA closed Tuesday's trading at $94.04. In Wednesday's pre-market activity, the stock is up $0.96 or 1.02 percent to $95.00.