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Valued at a market cap of $78.8 billion, HCA Healthcare, Inc. (HCA) is the largest non-governmental operator of acute care hospitals in the U.S., providing a wide range of medical and surgical services. It operates behavioral hospitals that offer therapeutic programs for psychiatric and substance abuse treatment. The Nashville, Tennessee-based company is expected to unveil its fiscal Q4 earnings results before the market opens on Friday, Jan. 24.
Ahead of the event, analysts forecast the hospital operator to post a profit of $6.03 per share, reflecting a growth of 2.2% from $5.90 per share in the same quarter last year. The company has consistently surpassed Wall Street's bottom-line projections in the past four quarters. HCA surpassed the consensus EPS estimate by a margin of 1.6% in the last reported quarter.
For fiscal 2024, analysts expect HCA to report EPS of $21.90, a 15.2% increase from $19.01 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 13.1% year-over-year to $24.77.
HCA has returned 10.6% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 24.2% rise. However, the stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) marginal gain over the same period.
Despite reporting better-than-expected Q3 adjusted EPS of $5.05, shares of HCA Healthcare tumbled 8.9% on Oct. 25. Investors were concerned about the company's lowered full-year guidance, as HCA now expects to hit the lower half of its revenue range. The company also highlighted significant hurricane-related disruptions, including $50 million in Q3 revenue losses and anticipated losses of up to $300 million in Q4, which spooked the market. Additionally, lingering operational issues at key facilities like Mission Hospital and Largo Hospital further contributed to fears of extended recovery costs and lost revenue, weighing on investor sentiment.
Analysts' consensus rating on HCA Healthcare stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 25 analysts covering the stock, opinions include 18 "Strong Buys," one "Moderate Buy," five "Holds," and one "Strong Sell." The average analyst price target for HCA is $401.91, suggesting a potential upside of 29.1% from current levels.
