On October 25, 2024, HCA Healthcare Inc (HCA, Financial) released its 8-K filing detailing the financial results for the third quarter ended September 30, 2024. HCA Healthcare, a Nashville-based healthcare provider, operates the largest collection of acute-care hospitals in the United States, with 188 hospitals and a broad network of outpatient facilities across 20 states and a small presence in England.
Quarterly Financial Highlights
HCA Healthcare reported revenues of $17.487 billion for Q3 2024, falling short of the analyst estimate of $17.537 billion. However, the company's earnings per share (EPS) of $4.88 fell short of the estimated $4.97, impacted by Hurricane Helene, which had an estimated unfavorable impact of $0.15 per diluted share.
Operational Performance and Challenges
The company experienced a 4.5% increase in same facility admissions and equivalent admissions compared to the same period last year. Emergency room visits also rose by 4.6%. However, outpatient surgeries saw a decline of 2.0%, indicating potential challenges in outpatient service demand.
“Our people recently, and heroically, responded to two major hurricanes in less than two weeks. The teamwork and enterprise capabilities of HCA Healthcare were on full display before, during and after these storms,” said Sam Hazen, Chief Executive Officer of HCA Healthcare.
Financial Achievements and Industry Significance
HCA Healthcare's adjusted EBITDA for the quarter was $3.267 billion, up from $2.880 billion in Q3 2023. This growth in EBITDA is crucial for the healthcare provider industry, as it reflects the company's ability to manage operational costs effectively while maintaining service quality.
Income Statement and Balance Sheet Overview
Net income attributable to HCA Healthcare was $1.270 billion, or $4.88 per diluted share, compared to $1.079 billion, or $3.91 per diluted share, in Q3 2023. The company's balance sheet showed cash and cash equivalents of $2.888 billion and total debt of $42.965 billion as of September 30, 2024.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $17.487 billion | $16.213 billion |
| Net Income | $1.270 billion | $1.079 billion |
| Adjusted EBITDA | $3.267 billion | $2.880 billion |
Cash Flow and Shareholder Returns
Cash flows from operating activities totaled $3.515 billion, a significant increase from $2.479 billion in Q3 2023. The company repurchased 4.948 million shares of its common stock at a cost of $1.795 billion, with $2.433 billion remaining under its repurchase authorization.
Analysis and Outlook
Despite the challenges posed by natural disasters, HCA Healthcare's revenue growth and operational resilience highlight its robust business model. However, the impact of hurricanes on EPS and outpatient services indicates areas that may require strategic focus. The company's reaffirmed guidance for 2024 suggests confidence in its ability to navigate these challenges, although results are expected to be in the lower half of the guidance range due to ongoing hurricane impacts.
Explore the complete 8-K earnings release (here) from HCA Healthcare Inc for further details.
