Why Is Hospital Chain HCA Healthcare Stock Trading Higher Today?

Zinger Key Points
  • HCA Healthcare says it experienced strong demand for services and improved cost trends.
  • HCA Healthcare's CFO retires after 34 years with the company

HCA Healthcare Inc HCA reported fourth-quarter 2023 revenue of $17.30 billion, exceeding the consensus of $16.51 billion.

Same-facility admissions rose 3.1% Y/Y, and same-facility equivalent admissions grew 3.9% Y/Y

“In the quarter, we experienced strong demand for services across our diversified portfolio of markets, facilities, and service lines. This growth coupled with improved cost trends drove solid financial performance in the fourth quarter,” said Sam Hazen, CEO.

Same facility emergency room visits increased by 2.1% Y/Y. Same facility revenue per equivalent admission increased 6.9% in the fourth quarter of 2023 compared to the fourth quarter of 2022.

For the fourth quarter of 2023, Adjusted EBITDA totaled $3.618 billion, compared to $3.179 billion in the fourth quarter of 2022.

The company reported adjusted EPS Of $5.90, beating the consensus of $5.04.

Management Update: HCA Healthcare announced that Bill Rutherford has decided to retire as Executive Vice President and Chief Financial Officer after a 34-year career with the company. 

Mike Marks, HCA Healthcare’s current Senior Vice President of Finance, will succeed Mr. Rutherford as Executive Vice President and CFO, effective May 1, 2024.

Outlook: HCA Healthcare forecasts fiscal year 2024 revenues of $67.75 billion to $70.25 billion, versus the consensus of $67.67 billion. It anticipates EPS of $19.70 to -$21.20 versus consensus of $19.52.

Capital expenditures for 2024, excluding acquisitions, are estimated to be $5.1 billion to $5.3 billion.

Price Action: HCA shares are up 3.93% at $298.01 on the last check Tuesday.

Photo via Company

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