HCA - HCA Healthcare lowers guidance as labor costs weigh on 1Q earnings

Hospital operator HCA Healthcare (NYSE:HCA) is trading ~10% lower in the pre-market Friday after the company cut its 2022 guidance and fell short of expectations for 1Q 2022 earnings amid pressure on labor costs. “In the first quarter, we had a number of positive volume and revenue indicators. Unfortunately, they were offset by higher than expected inflationary pressures on labor costs,” Chief Executive Sam Hazen remarked ahead of the earnings call scheduled for today at 9:00 a.m. CET. Revenue for the quarter stood at $14.9B to exceed the Street forecasts with a ~6.9% YoY growth as same facility admissions and same facility equivalent admissions rose ~2.1% YoY and ~5.0% YoY. However, net income fell ~10.5% YoY to ~$1.2B, while expenses on salaries and benefits jumped ~10.1% to make up ~46.4% of total revenue compared to ~45.1% in the prior-year period. Meantime, the licensed beds at the end of the period

For further details see:

HCA Healthcare lowers guidance as labor costs weigh on 1Q earnings