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Nashville, Tennessee-based HCA Healthcare, Inc. (HCA) is the largest non-governmental operator of acute care hospitals in the U.S. With a market cap of $103.3 billion, HCA Healthcare operates hospitals and related health care entities offering various medical and surgical services. The healthcare giant is expected to release its Q3 earnings before the market opens on Friday, Oct. 25.
Ahead of the event, analysts expect HCA to report a profit of $4.98 per share, up 27.4% from $3.91 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS estimates in three of the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter grew 28.2% year-over-year to $5.50, exceeding the consensus estimates by 10.7%.
For fiscal 2024, analysts expect HCA to report an adjusted EPS of $22.48, up 18.3% from $19.01 in fiscal 2023. In fiscal 2025, its adjusted EPS is projected to grow 11% annually to $24.95.
HCA has gained 45.8% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Health Care Select Sector SPDR Fund’s (XLV) 12.8% returns during the same time frame.
Shares of HCA Healthcare surged 4.6% and remained in green for the next seven trading sessions after the release of its impressive Q2 earnings on July 23. The company’s revenue grew 10.3% year over year to $17.5 billion, driven by a rise in admissions and revenue per admission. Additionally, its net margin expanded by 83 basis points to 8.4%, contributing to a 22.5% increase in net income to shareholders, totaling $1.5 billion.
The consensus opinion on HCA stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 24 analysts covering the stock, 18 recommend a “Strong Buy,” two advise a “Moderate Buy,” and four suggest a “Hold” rating.
The mean price target of $398.77 suggests a potential upside of 1.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
