What do HCA Healthcare (HCA) third quarter results hold?


HCA Health, Inc. HCA is expected to release its third quarter 2021 results on October 22, before the market opens.

For the most recently released quarter, the company reported adjusted earnings of $ 4.37 per share, which is 37.9% higher than Zacks’ consensus estimate of $ 3.17. Net income also improved 191.3% year-over-year thanks to higher revenues.

He experienced strong patient volumes during the quarter.

Factors to note

During the quarter to be reported, the company is expected to have recorded a higher volume of patients. HCA Healthcare is likely to have seen an increase in its inpatient admissions and outpatient surgeries from the previous year’s figure. Other important factors that could have contributed to the increase are a better pay mix, the resumption of non-urgent procedures, etc.
Zacks’ consensus estimate for HCA Healthcare revenue is $ 14.5 billion, which suggests growth of 8.7% from the figure reported in the previous year quarter.

Zacks’ consensus estimate for third quarter earnings is set at $ 3.92, indicating a 104.2% increase from the figure released the previous year. This increase was probably supported by the improvement in incomes.

The company’s increased number of ambulatory care facilities may have boosted patient admissions in the reporting quarter. Zacks’ consensus estimate for admissions implies a 6.9% improvement over the figure released last year.

The company’s licensed beds have likely increased thanks to better admission. The consensus mark for the number of approved beds shows an increase of 0.5% from the number reported in the quarter of the previous year.

HCA Healthcare is expected to have continued with its dividend payout and share buyback plan, both of which were resumed earlier this year. This must have lent an extra cushion to his performance.

The consensus estimate of patient days in the third quarter suggests a 7% increase over the actual figures for the quarter of the previous year.

The performance of the company is likely to have suffered high expenses due to higher operating costs and substantial investments related to growth.

What our quantitative model predicts

Our proven model predicts higher profits for HCA Healthcare this time around. The combination of a positive ESP on earnings and a Zacks rank of No.1 (strong buy), 2 (buy) or 3 (hold) increases the chances of beating the winnings, as you can see below.

ESP on income: HCA Healthcare has an ESP of + 6.41%. This is because the most accurate estimate of $ 4.17 is higher than Zacks’ consensus estimate of $ 3.92. You can discover the best stocks to buy or sell before they are flagged with our ESP filter on income.

HCA Healthcare, Inc. Awards and EPS Surprise

HCA Healthcare, Inc. price-eps-surprise | Quote from HCA Healthcare, Inc.

Zack Rank: HCA Healthcare currently holds a Rank 3 of Zacks. You can see The full list of today’s Zacks # 1 Rank stocks here.

Other actions to consider

Here are some other medical sector stocks to consider with the perfect combination of elements to exceed estimates in their next releases:

Acadia Healthcare Company, Inc. ACHC currently has an ESP on Gains of + 3.00% and a Zacks Rank of 3.

MEDNAX, Inc. MD has a revenue ESP of + 4.41% and is currently ranked # 3.

Bausch Health Cos Inc. BHC has a revenue ESP of + 0.75% and is currently ranked 3rd by Zacks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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