HCA Healthcare's (HCA, Financial) stock tumbled nearly 10%, dragging down rivals as Q3 results fell short of expectations. Despite 8% revenue growth to $17.5 billion, the company missed forecasts by $50 million, largely due to disruptions from hurricanes Helene and Milton. The storms took a $50 million toll on HCA's bottom line, with more impact expected in Q4, pushing the company to revise its full-year outlook to the lower end of its guidance range. The hit served as a stark reminder of how natural disasters can slam even the healthcare sector's giants.
Operationally, there were bright spots—adjusted EBITDA surged 13% year-over-year to $3.3 billion, with margins improving. Yet, earnings per share landed $0.10 below target at $4.88, reflecting the strain from the hurricanes. Admissions saw a healthy 4.5% increase, but outpatient surgeries dipped by 2%, highlighting the mixed results on the ground. HCA is adjusting its forecast at the lower end of the previously provided guidance range, at $21.60-$22.80 in earnings per share and $69.75-$71.75 billion in revenue.
The news sent ripples through the healthcare sector, with Universal Health Services, Tenet Healthcare, and others feeling the shock. For investors, HCA's quarter was a wake-up call: resilience is key, but when Mother Nature strikes, even the best-laid plans can falter. As the healthcare landscape braces for more unpredictable weather events, the focus on operational agility and risk management has never been more crucial.
