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HCA Healthcare

HCA Healthcare Inc reported its Q22020 earnings on July 22nd, 2020. The results beat analyst estimates as earnings per share grew by a significant 46.15% Y-o-Y to $3.23. Revenue came in at $11.06 billion, a drop of 12.17% Y-o-Y but comfortably above estimates of $9.9 billion. Inpatient revenue was down 4% while outpatient revenue was down 30%.

HCA Healthcare is a major operator of healthcare facilities in the US. HCA healthcare locations are spread out across 20 US states and some parts of England. HCA hospitals are mainly concentrated in Texas, Florida, and Tennessee.

The growth in earnings was mainly attributed to the stimulus that HCA Healthcare received as part of the CARES Act. According to Sam Hazen, CEO, HCA Healthcare, “In the quarter, salaries and benefits, supplies and other operating expenses collectively declined approximately 11% as compared to the prior year. For the quarter, we recorded pre-tax government stimulus income from the CARES Act of $822 million, which reduced expenses further and increased diluted earnings per share by $1.73. In sum, our overall performance was better than we expected with diluted earnings per share of $3.16, an increase of 46% as compared to the second quarter last year.”

He further added, “The improvement in our financial results was generally better and broader than we expected, but we believe it is too early for us to make any conclusive statements about the future or provide any guidance for the rest of the year.”

However, HCA Healthcare is facing fresh challenges as coronavirus cases have been rising again in Texas and Florida, the two states where HCA and as well as HCA Healthcare subsidiaries have a major presence. The rise in cases has made the company restrict elective procedures and free up capacity.

HCA Healthcare stock closed at $126.64 on 31st July 2020, up 29.26% for the past month.

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