HCA Holdings Q3 Results Top Estimates, Backs 2014 Outlook

(RTTNews) - Hospital operator HCA Holdings, Inc. (HCA) reported Tuesday a profit for the third quarter that surged from last year, reflecting improved margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company reaffirmed earnings and revenue guidance for the full-year 2014 that was raised earlier in the month.

"Results for the company's third quarter reflect a continuation of solid volume trends and improving payor and service mix," President and CEO Milton Johnson said in a statement.

The Nashville, Tennessee-based company reported net income of $518 million or $1.16 per share for the third quarter, sharply higher than $365 million or $0.79 per share in the prior-year quarter.

Results for the latest quarter include losses on sales of facilities of $0.02 per share. Excluding items, adjusted net income for the latest quarter was $527 million or $1.18 per share.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 9.0 percent to $9.22 billion from $8.46 billion in the same quarter last year, topped sixteen Wall Street analysts' consensus estimate of $9.12 billion.

Same facility equivalent admissions increased 4.1 percent in the quarter, and same facility admissions grew 2.8 percent. Same facility revenue per equivalent admission increased 3.8 percent, and same facility emergency room visits improved 7.3 percent.

Same facility inpatient surgeries increased 1.4 percent, and same facility outpatient surgeries grew 1.9 percent.

The HCA Holdings Board has also authorized a share repurchase program for up to $1 billion of the company's outstanding common stock.

Looking ahead to the fiscal 2014, the company had raised guidance earlier in the month. Adjusted earnings are now projected in a range of $4.40 to $4.60 per share on projected revenues between $36.50 and $37.00 billion.

Street is currently looking for full-year 2014 earnings of $4.34 per share, on annual revenues of $36.55 billion.

Separately, the Company agreed to acquire CareNow, a privately-held company with 24 urgent care centers in the Dallas - Fort Worth area. Terms of the agreement were not disclosed. HCA expects to complete the transaction in the fourth quarter of this year, when CareNow will become a division inside of HCA.

In Tuesday's regular trading session, HCA is currently trading at $69.45, down $1.95 or 2.73% on a volume of 1.34 million shares.