Latest news with #HCAHealthcare
Reuters
2 days ago
- Business
- Reuters
Universal Health Services beats quarterly profit estimates on higher medical care demand
July 28 (Reuters) - U.S. hospital operator Universal Health Services (UHS.N), opens new tab beat Wall Street estimates for second-quarter profit on Monday, driven by sustained demand for medical care services. Health insurers have flagged elevated demand and costs in individual Affordable Care Act (Obamacare) and Medicaid plans for low-income individuals, which could benefit hospital operators. Last week, larger peer HCA Healthcare (HCA.N), opens new tab beat quarterly profit estimates but saw its shares decline amid concerns over impending changes to Medicaid and Obamacare insurance plans under the Trump administration. Universal Health's same-facility adjusted admissions increased by 2% at acute care hospitals during the quarter, while admissions at behavioral healthcare facilities grew by 0.4%. The company now sees its 2025 revenue to be between $17.10 billion and $17.31 billion, compared to the previously expected range of $17.02 billion to $17.36 billion. Analysts, on average, expect 2025 revenue of $17.14 billion, according to data compiled by LSEG data. For the quarter ended June 30, the King Of Prussia, Pennsylvania-based company reported an adjusted profit of $5.43 per share, beating estimates of $4.92 per share. Investors are currently focused on how hospital operators will address potential tariffs affecting global supply chains for medical devices and surgical equipments. The sector is also preparing for the expiry of Obamacare subsidies next year, a change expected to impact patient coverage, raise insurance premiums and reduce enrollment numbers, potentially leaving hospitals responsible for increased uncompensated care costs.
Yahoo
3 days ago
- Business
- Yahoo
Earnings To Watch: Universal Health Services (UHS) Reports Q2 Results Tomorrow
Hospital management company Universal Health Services (NYSE:UHS) will be announcing earnings results this Monday after market hours. Here's what you need to know. Universal Health Services missed analysts' revenue expectations by 1% last quarter, reporting revenues of $4.1 billion, up 6.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' EPS estimates but same-store sales in line with analysts' estimates. Is Universal Health Services a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Universal Health Services's revenue to grow 8.6% year on year to $4.24 billion, slowing from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.94 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Health Services has missed Wall Street's revenue estimates twice over the last two years. Looking at Universal Health Services's peers in the healthcare providers & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tenet Healthcare delivered year-on-year revenue growth of 3.3%, beating analysts' expectations by 2.3%, and HCA Healthcare reported revenues up 6.4%, topping estimates by 0.7%. Tenet Healthcare traded down 9.4% following the results. Read our full analysis of Tenet Healthcare's results here and HCA Healthcare's results here. Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. Universal Health Services is down 10.9% during the same time and is heading into earnings with an average analyst price target of $224.38 (compared to the current share price of $158.71). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
HCA Healthcare Inc (HCA) Q2 2025 Earnings Call Highlights: Strong EPS Growth and Strategic ...
Diluted Earnings Per Share: Increased 24% to $6.84. Revenue Growth: 6.4% increase driven by greater demand, improved payer mix, and consistent patient acuity levels. Equivalent Admissions: Increased 1.7% for the quarter and 2.3% for the year. Managed Care Equivalent Admissions: Grew 4% year-to-date. Medicare Growth: 3%, slightly below expectations. Adjusted EBITDA Margin: Improved by 30 basis points compared to the prior-year quarter. Adjusted EBITDA Growth: 8.4% over the prior-year quarter. Cash Flow from Operations: $4.2 billion in the quarter. Capital Expenditures: $1.2 billion in the second quarter. Share Repurchases: $2.5 billion in the second quarter. Dividends: $171 million in the second quarter. 2025 Revenue Guidance: Expected to range between $74 billion and $76 billion. 2025 Net Income Guidance: Expected to range between $6.11 billion and $6.48 billion. 2025 Adjusted EBITDA Guidance: Expected to range between $14.7 billion and $15.3 billion. 2025 Diluted EPS Guidance: Expected to range between $25.50 and $27. 2025 Capital Spending Guidance: Approximately $5 billion. Warning! GuruFocus has detected 4 Warning Signs with UVE. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HCA Healthcare Inc (NYSE:HCA) reported a strong financial performance for the second quarter of 2025, with a 24% increase in diluted earnings per share to $6.84. The company experienced solid revenue growth of 6.4%, driven by increased demand for services, improved payer mix, and consistent patient acuity levels. HCA Healthcare Inc (NYSE:HCA) improved quality outcomes, throughput measures in emergency rooms, and patient satisfaction during the quarter. The company increased its 2025 guidance, reflecting a positive demand environment and the effectiveness of strategic initiatives. HCA Healthcare Inc (NYSE:HCA) maintained a strong balance sheet and executed a balanced capital allocation strategy, including $4.2 billion in cash flow from operations and $2.5 billion in share repurchases. Negative Points Medicaid volumes were down slightly, and self-pay volumes were below expectations, representing the lowest reimbursing payers. The company anticipates some people will lose insurance coverage due to the expiration of enhanced premium tax credits, which could impact financial performance. HCA Healthcare Inc (NYSE:HCA) faces challenges from the One Big Beautiful Bill Act, which includes potential adverse impacts from Medicaid components and exchange provisions. The company experienced underperformance in a couple of markets, which offset some of the better performance in hurricane-affected markets. Supply expenses increased slightly as a percentage of revenue due to increased spending on cardiac-related devices. Q & A Highlights Q: Can you elaborate on the guidance update, particularly regarding the Tennessee DPP program and the modest tweak on admissions numbers? A: Michael Marks, CFO, explained that the $300 million increase in guidance is split equally between state supplemental payment programs, including the new Tennessee program, and better-than-expected performance in their portfolio. The Tennessee program is expected to start contributing cash in the latter half of the year. The admissions number was adjusted due to lower-than-expected Medicaid and self-pay volumes, but overall, the portfolio is performing well. Q: Could you provide more details on your resiliency programs, especially in light of the potential expiration of subsidies? A: Michael Marks stated that HCA is developing resiliency programs to offset potential adverse impacts from the expiration of enhanced premium tax credits (EPTCs). These efforts include benchmarking corporate departments, operational improvements, and leveraging automation and digital transformation. More details will be provided in the fourth-quarter earnings call. Q: What are you seeing in terms of commercial volume trends, and how might consumer confidence affect this? A: Michael Marks noted that managed care equivalent admissions are up 4% year-to-date, aligning with expectations. Exchange volumes are slightly better than expected, while traditional commercial volumes are slightly below. CEO Sam Hazen added that healthcare demand appears inelastic, and they haven't observed significant changes in consumer confidence affecting volumes. Q: How is HCA managing market share and local market dynamics, especially with high utilization rates reported by payers? A: CEO Sam Hazen highlighted sustained market share gains across service lines and markets. HCA is investing in network integrity and capacity to meet demand and achieve share gains. Despite some competitive dynamics, HCA remains agile and confident in its market positioning. Q: Can you provide insights into the impact of the One Big Beautiful Bill Act and the expiration of EPTCs on long-term guidance? A: Michael Marks stated that HCA's financial resiliency program should offset near-term impacts from the Act's exchange provisions. Long-term, HCA expects to manage impacts through phased reforms and potential supplemental payment approvals. The outcome of EPTCs is uncertain, but HCA is preparing resiliency plans to mitigate adverse effects. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
HCA lifts 2025 profit forecast, flags insurance policy uncertainty
July 25 (Reuters) - HCA Healthcare (HCA.N), opens new tab lifted its 2025 profit forecast but said it cannot determine how looming changes to insurance plans under Medicaid and Obamacare will impact 2026 earnings, sending the hospital operator's shares down 2% on Friday. Some COVID-era subsidies under Obamacare are set to lapse in 2026. That would impact patient coverage, lead to a spike in insurance premiums and cause a drop in enrollment numbers, leaving hospital operators such as HCA to foot a heftier bill for compensated care. "We continue to advocate strongly for their extension, but at this point we do not know what the outcome will be," CEO Samuel Hazen said during a call with analysts. Hazen said the company is working on a cost efficiency initiative to offset any impact from the subsidy expiry and other government actions such as Medicaid policy changes and tariffs. Still, the hospital chain operator raised its 2025 profit forecast to between $25.50 and $27 per share, from a range of $24.05 to $25.85 earlier. The latest forecast includes the expected impact from the Trump administration's current and future policies, including potential tariffs on imports. It also posted upbeat second-quarter results. Quarterly revenue rose 6.4% to $18.61 billion, compared with analysts' estimates of $18.50 billion, according to data compiled by LSEG. Adjusted profit came in at $6.84 per share, beating estimates of $6.25. However, HCA's same-facility inpatient and outpatient surgeries decreased by 0.3% and 0.6%, respectively, in the quarter ended June 30. Investors appeared concerned about upcoming regulatory changes that could lead to lower medical membership on the Obamacare and Medicaid plans, said Morningstar analyst Julie Utterback. "Share reaction may reflect that profit growth could slow materially for caregivers like HCA in the next couple of years." Utterback said.
Yahoo
5 days ago
- Business
- Yahoo
HCA Healthcare Eyes $76 Billion Revenue, Aggressive Profit Growth
HCA Healthcare Inc. (NYSE:HCA), one of the nation's largest hospital operators, announced robust second-quarter 2025 financial results on Friday, surpassing analyst expectations for both revenue and earnings per share. The company's performance signals continued resilience within the healthcare sector despite some moderation in patient utilization trends. For the second quarter, HCA reported total revenues of $18.61 billion, representing a 6.4% increase from the same period last year and marginally surpassing the consensus estimate of $18.49 billion. The hospital chain reported adjusted earnings per share (EPS) of $6.84, up from $5.50 a year ago, surpassing the consensus of $6.24. In the second quarter of 2025, same-facility admissions increased by 1.8%, and same-facility equivalent admissions increased by 1.7%. This was lower than 2.6% and by 2.8%, respectively, in the first quarter of facility emergency room visits increased by 1.3%. Same-facility inpatient surgeries decreased by 0.3%, and same-facility outpatient surgeries declined by 0.6%. Same facility revenue per equivalent admission increased 4% compared to the second quarter of 2024. View more earnings on HCA Net income attributable to HCA Healthcare increased 13.1% to $1.653 billion. Adjusted EBITDA increased 8.4% to $3.85 billion. The company announced a quarterly cash dividend of 72 cents per share, payable on September 30, 2025, to shareholders of record as of the close of business on September 16, 2025. HCA Healthcare CEO Sam Hazen said 'We are pleased to report strong financial results for the second quarter. They reflected solid revenue growth, improved margins, and better outcomes for our patients.' Outlook HCA Healthcare raised fiscal 2025 GAAP earnings per share guidance from $24.05-$25.85 to $25.50-$27.00 compared to the consensus of $25.37. The company also raised 2025 sales guidance from $72.8 billion-$75.8 billion to $74 billion-$76 billion, compared to the consensus of $74.72 billion. HCA Healthcare forecasts 2025 net income of $6.11 billion-$6.48 billion, compared to prior guidance of $5.85 billion-$6.29 billion. The company raised its adjusted EBITDA guidance from $14.30-$15.10 billion to $14.70-$15.30 billion. Price Action: HCA Healthcare stock is trading higher by 0.22% to $342.25 at last check Friday. Read Next:Photo by Rido via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? HCA HEALTHCARE (HCA): Free Stock Analysis Report This article HCA Healthcare Eyes $76 Billion Revenue, Aggressive Profit Growth originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
