HCA - HCA Healthcare stock climbs as Q1 revenue grows raises FY23 outlook

2023-04-21 08:39:00 ET

HCA Healthcare stock ( NYSE: HCA ) stock rose ~6% premarket on Friday after Q1 results beat estimates and the company raised its FY23 outlook.

Net income attributable to HCA Healthcare, excluding losses (gains) on sales of facilities, grew +19.66% Y/Y to $4.93. GAAP EPS increased +17.15% to $4.85.

Q1 revenues rose +4.3% Y/Y to $15.59B. Adjusted EBITDA grew +7.7% to ~$3.17B.

HCA said same facility admissions grew 4.4% and same facility equivalent admissions increased 7.5% Y/Y. Meanwhile, same facility emergency room visits increased 10.3% Y/Y.

Same facility inpatient surgeries increased 3.6%, while same facility outpatient surgeries grew 5.1% Y/Y.

The company added that same facility revenue per equivalent admission declined 2.3% in Q1 2023, compared to Q1 2022. The Y/Y comparison of same facility revenue per equivalent admission was impacted by higher COVID-19 volumes and reimbursement in the prior year.

According to HCA, COVID-19 represented 3.1% of same facility admissions, compared to 9.7% in Q1 2022.

As of March 31, the company's cash and cash equivalents were $842M, total debt was ~$38.86B, and total assets of ~$52.71B.

Buyback : In Q1, HCA bought back 3.34M of its common shares for ~$846M. As of March 31, the company had $3.74B remaining under its buyback authorizations.

Outlook :

HCA raised its FY2023 revenue guidance range to be between $62.5B to $64.5B, compared to prior estimate, provided during Q4 results in January, which was $61.5B to $63.5B. Consensus revenue estimates is $62.61B.

The company expects EPS to be between $17.25 to $18.55, compared to prior outlook of $16.40 to $17.60.

Net Income Attributable to HCA Healthcare is now expected in the range of $4.75B to $5.16B, versus previous forecast range of $4.525B to $4.895B. Adjusted EBITDA outlook anticipated between $12.1B to $12.7B, compared to prior guidance of $11.8B to $12.4B.

The company expects capital expenditures for 2023, excluding acquisitions, to be ~$4.6B.

HCA +5.38% to $285.35 premarket April 21

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