Results: HCA Healthcare, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

HCA Healthcare, Inc. (NYSE:HCA) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$17b. HCA Healthcare reported statutory earnings per share (EPS) US$5.53, which was a notable 13% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for HCA Healthcare

Following the latest results, HCA Healthcare's 21 analysts are now forecasting revenues of US$70.5b in 2024. This would be a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.1% to US$22.58. In the lead-up to this report, the analysts had been modelling revenues of US$69.7b and earnings per share (EPS) of US$21.10 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.0% to US$374. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values HCA Healthcare at US$410 per share, while the most bearish prices it at US$315. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting HCA Healthcare is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of HCA Healthcare'shistorical trends, as the 6.5% annualised revenue growth to the end of 2024 is roughly in line with the 6.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.8% per year. So although HCA Healthcare is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HCA Healthcare following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for HCA Healthcare going out to 2026, and you can see them free on our platform here..

Even so, be aware that HCA Healthcare is showing 2 warning signs in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com