On July 23, 2024, HCA Healthcare Inc (HCA, Financial) released its 8-K filing detailing the financial and operating results for the second quarter ended June 30, 2024. HCA Healthcare, a Nashville-based healthcare provider organization, operates the largest collection of acute-care hospitals in the United States. As of December 2022, the firm owned and operated 182 hospitals, 126 freestanding outpatient surgery centers, and a broad network of physician offices, urgent-care clinics, and freestanding emergency rooms across 20 states and a small foothold in England.
Performance Highlights
HCA Healthcare Inc (HCA, Financial) reported revenues of $17.492 billion for Q2 2024, surpassing the analyst estimate of $17.046 billion. This represents a significant increase from $15.861 billion in the same quarter of 2023. Net income attributable to HCA Healthcare Inc totaled $1.461 billion, or $5.53 per diluted share, compared to $1.193 billion, or $4.29 per diluted share, in Q2 2023. These results include gains on sales of facilities amounting to $12 million, or $0.03 per diluted share.
For the first six months of 2024, revenues reached $34.831 billion, up from $31.452 billion in the same period of 2023. Net income attributable to HCA Healthcare Inc was $3.052 billion, or $11.47 per diluted share, compared to $2.556 billion, or $9.14 per diluted share, for the first six months of 2023.
Operational Metrics
Same facility admissions increased by 5.8%, while same facility equivalent admissions rose by 5.2% in Q2 2024 compared to the prior year period. Same facility emergency room visits increased by 5.5%, and same facility inpatient surgeries grew by 2.6%. However, same facility outpatient surgeries declined by 2.1%. Same facility revenue per equivalent admission increased by 4.4%.
Financial Achievements
Adjusted EBITDA for Q2 2024 totaled $3.550 billion, up from $3.056 billion in Q2 2023. This non-GAAP financial measure is crucial for comparing operating results with other companies in the healthcare industry. The company’s balance sheet as of June 30, 2024, reflected cash and cash equivalents of $831 million, total debt of $40.880 billion, and total assets of $57.379 billion. Capital expenditures for the quarter amounted to $1.281 billion, excluding acquisitions.
Cash Flow and Share Repurchase
Cash flows provided by operating activities in Q2 2024 totaled $1.971 billion, compared to $2.475 billion in Q2 2023. During the quarter, HCA Healthcare repurchased 4.217 million shares of its common stock at a cost of $1.367 billion, with $4.228 billion remaining under its repurchase authorization as of June 30, 2024. The company had $7.137 billion of availability under its credit facilities.
Dividend and Revised Guidance
The Board of Directors declared a quarterly cash dividend of $0.66 per share, payable on September 30, 2024, to stockholders of record at the close of business on September 16, 2024. HCA Healthcare revised its 2024 guidance, increasing the revenue range to $69.750 to $71.750 billion, net income to $5.675 to $5.975 billion, Adjusted EBITDA to $13.750 to $14.250 billion, and EPS to $21.60 to $22.80 per diluted share.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $17.492 billion | $15.861 billion |
| Net Income | $1.461 billion | $1.193 billion |
| Diluted EPS | $5.53 | $4.29 |
Analysis
HCA Healthcare Inc (HCA, Financial) demonstrated robust financial performance in Q2 2024, exceeding analyst estimates for both revenue and earnings per share. The company's ability to increase same facility admissions and emergency room visits indicates strong demand for its services. The revised guidance for 2024 reflects confidence in continued growth and operational efficiency. However, the decline in same facility outpatient surgeries and the decrease in cash flows from operating activities warrant close monitoring.
Overall, HCA Healthcare Inc (HCA, Financial) has shown resilience and adaptability in a challenging healthcare environment, positioning itself for sustained growth and value creation for its shareholders.
Explore the complete 8-K earnings release (here) from HCA Healthcare Inc for further details.
