HCA Tops Estimates Due to Higher Admissions

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By Trey Thoelcke Published
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Hospital operator HCA Holdings Inc. (NYSE: HCA) reported a better-than-expected second-quarter profit due to higher patient admissions.

Net income for the quarter rose to $391 million, or $0.85 cents per share, on $8.11 billion in revenue. Earnings per share (EPS) were $0.43 cents per share a year earlier, and revenue was 12% higher year-over-year. Analysts on average were expected earnings of $0.78 per share, according to Thomson Reuters.

Nashville-based HCA reaffirmed its 2012 EPS outlook of $3.57 to $3.77 on revenue of $32 billion to $33 billion. The consensus forecast calls for earnings of $3.69 per share and revenue of $35.56 billion.

Admissions increased in the quarter while volumes fell for competitors. HCA was helped by its presence in urban and suburban areas where the economy is doing better. The company also said revenue was helped by its $1.45 billion buyout last year of a partner’s stake in the HealthOne system of hospitals and surgery clinics in the Denver area.

Shares are trading about 2% higher in premarket trading to $27.15. The 52-week trading range is $17.03 to $31.39. Thomson Reuters had a consensus analyst price target of $33.76 before this news.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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