HCA Healthcare stock surged back above a buy point early Tuesday after the hospital operator reported better-than-expected second-quarter earnings and revenue and raised its full-year profit expectations.
Rivals Tenet Healthcare and Universal Health, which also report this week, rose modestly, flashing their own buy signals.
Nashville-based HCA, which is the largest for-profit hospital operator in the U.S., announced Tuesday that Q2 EPS grew 28% to $5.50. Sales increased more than 10% to $17.49 billion. Analysts expected HCA earnings coming in at $4.93 per share and revenue totaling $17.05 billion.
Hospitals have been projected to ride a tailwind of growing demand for medical care. HCA Healthcare reported admissions rose more than 5% in Q2 while emergency room visits grew 5.5%. The hospital operator added that inpatient surgeries also increased 2.6%.
The company saw revenue per equivalent admission grow 4.4% in the second quarter.
On the strength of its Q2 results, HCA Healthcare also increased its full-year earnings outlook Tuesday, expecting $21.60-$22.80 per share, up from its previous estimate of $19.70-$21.20 per share.
HCA Healthcare Stock And Hospital Operators
Shares of HCA Healthcare leapt 3.5% to 336.69 during market action on Tuesday, moving back above a still-valid 335.83 buy point after meeting resistance around the 344 level, according to MarketSurge chart analysis. On Monday, HCA gained 1% to 325.38.
Meanwhile, fellow hospital operator Tenet Healthcare reports earnings and revenue early Wednesday. THC popped gained 1.5% early Tuesday, flashing a buy signal as it looks to bounce off its 50-day moving average. The stock has a 142.35 buy point from a flat base.
Universal Health reports earnings after the market closes Wednesday. UHS stock advanced 2% early Tuesday, jumping above an official 182.92 buy point and its 50-day moving average.
HCA Healthcare has a 74 Composite Rating out of a best-possible 99. Shares have a 70 Relative Strength Rating and a 92 EPS Rating.
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