Health care services provider HCA Holdings Inc. (NYSE: HCA) revealed Monday morning its preliminary financial and operating results for the first quarter of 2017. The report sent the share price down about 3.6% in early trading Monday after the company said both revenues and net income would come in below analysts’ expectations.
For the quarter, HCA said it expects revenues of $10.62 billion, compared with year-ago quarterly revenues of $10.26 billion. The consensus estimate from analysts calls for revenues of $10.78 billion.
Net income is now estimated at approximately $659 million, or $1.74 per diluted share. In the first quarter of 2016, HCA posted earnings per diluted share of $1.69. Analysts are looking for earnings per share of $1.79.
In its announcement, HCA said:
Results for the first quarter of 2017 were affected by changes in payer mix and the loss of one day when compared to the first quarter of 2016. Same facility Medicare admissions comprised 48.1 percent of the first quarter 2017 admissions, compared to 47.0 percent in the prior year’s first quarter. In the first quarter of 2017, same facility managed care/health exchange admissions comprised 27.4 percent of admissions, compared to 28.6 percent in the prior year’s first quarter.
Admissions to facilities operating a year ago (same facility admissions) rose 1.2% year over year in the first quarter, and same facility equivalent admissions increased by 1.6%. Same facility emergency room admissions rose 1.1%. Same facility revenue per equivalent admission is expected to increase approximately 1.7% in the first quarter of 2017 compared to the same period last year.
HCA did not change its financial guidance for the 2017 fiscal year ending in December. Analysts currently expect full-year revenues of $43.3 billion and earnings per share of $7.39.
Shares traded down about 3% in the noon hour Monday, at $85.07 in a 52-week range of $67.00 to $91.03. The consensus 12-month price target on the stock is $94.41.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.