HCA Holdings Shares Surge 7% On Rosy Outlook, Boosts 2014 Outlook

(RTTNews) - Shares of HCA Holdings, Inc. (HCA) surged more than seven percent in extended trading on Wednesday after the hospital operator provided earnings and revenue guidance for the third quarter, well above Street view. The company also raised its earnings and revenue forecast for the full-year 2014.

HCA said it is scheduled to report financial results for the third quarter of fiscal 2014 on, or about, October 28, 2014.

The Nashville, Tennessee-based company said it expects adjusted earnings of about $1.16 per share for the third quarter, on projected revenues of about $9.22 billion. This compares to adjusted earnings of$0.79 per share and revenues of $8.456 billion reported last year.

The guidance include losses on sales of facilities of $12 million or $0.02 per share.

On average, analysts polled by Thomson Reuters currently expect the company to report earnings of $0.98 per share on quarterly revenues of $9.04 billion. Analysts' estimates typically exclude one-time items.

Adjusted EBITDA for the third quarter is expected to be about $1.828 billion. Same facility revenue per equivalent admission, excluding Texas Medicaid Waiver and RAC adjustments, is expected to increase about 3.5 percent.

Meanwhile, same facility admissions for the third quarter increased 2.8 percent, while same facility equivalent admissions increased 4.1 percent. Same facility uninsured admissions decreased 14.8 percent and same facility equivalent admissions declined 8.9 percent. Same facility emergency room visits improved 7.3 percent.

Looking ahead to fiscal 2014, HCA raised its adjusted earnings guidance to a range of $4.40 to $4.60 per share from the prior forecast in the range of $4.00 to $4.25 per share. Analysts currently expect full-year 2014 earnings of $4.22 per share.

The company also now projects annual revenues between $36.50 billion and $37.00 billion, up from the previous guidance between $36.00 billion and $36.50 billion. Street is currently looking for full-year 2014 revenues of $36.43 billion.

The revenue guidance includes adjustments to revenues from the indigent care component of the Texas Medicaid Waiver Program and Medicare RAC settlements.

HCA closed Wednesday's regular trading session at $64.84, down $2.14 or 3.19% on a volume of 9.49 million shares. However, the stock surged $4.65 or 7.17% in after-hours trading.