HCA - HCA Healthcare climbs 10% after 2Q beats even as net income declines
Leading hospital operator HCA Healthcare ( NYSE: HCA ) rose ~10% in the pre-market Friday after the company managed to beat Street forecasts with its 2Q 2022 financials even as its net income extended the decline amid rising costs.
“Many aspects of our business were positive considering the challenges we faced with the labor market and other inflationary pressures on costs,” Chief Executive Sam Hazen noted ahead of the earnings call at 8:00 a.m. CST.
HCA’s ( HCA ) revenue for the quarter rose ~3% YoY to $14.8B, following a ~7% YoY topline growth in the previous quarter.
At the end of the quarter, the company operated 182 hospitals with 48,979 licensed beds, compared to 187 hospitals and 49,693 at the end of the prior-year quarter.
Highlights of the operational data include a ~2% YoY decline in patient days and roughly unchanged equivalent patient days. Meanwhile, on a same facility basis, the equivalent admissions stood flat, and revenue per equivalent admission grew ~4% YoY to $16.4K.
In financial measures, adj. EBITDA dropped ~6% YoY to $3.0B as salaries and benefits rose ~6% YoY to $6.8B, making up ~46% of the topline compared to ~44% in the prior-year period.
Extending the ~11% YoY decline in the preceding quarter, net income fell ~20% YoY during 2Q 2022 to $1.2B, while cash and equivalents stood at $858M, implying a ~41% drop from the 2021 year-end.
Three months ago, HCA ( HCA ) shares came under pressure after the company slashed its 2022 guidance as labor costs hurt earnings.
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HCA Healthcare climbs 10% after 2Q beats even as net income declines