Why HCA Healthcare beat the market on Tuesday
Even a good day for the global stock market, HCA Health (NYSE: HCA) was a big winner on Tuesday. The hospital operator’s latest quarterly results were a real cure for the investor blues, with the stock closing a strong and S&P 500 14% higher crush index.
The catalyst was HCA’s second quarter results, which the company released that morning. For the quarter, revenue was just over $ 14.4 billion, or 30% more year-over-year. Much of this was due to a rebound in demand for health services, which was hit by the coronavirus pandemic in 2020, as many potential patients chose to delay non-essential surgeries at the time.
Net income, meanwhile, rose 34% to $ 1.45 billion ($ 4.36 per share).
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The top two figures beat analysts’ estimates, which averaged just $ 13.6 billion in revenue and $ 3.16 in net earnings per share.
Better yet, HCA has raised its forecast for all of 2021. The company now expects its annual revenue to be between $ 57 billion and $ 58 billion, with earnings per share of $ 16.30 to $ 17 billion. , $ 10 per share.
HCA makes hay while the sun is shining. CEO Sam Hazen said, “We continue to invest aggressively in our strategic agenda, which is to build clinical capacity to serve our communities while developing more comprehensive corporate resources to support caregivers and differentiate our networks. local. “
Assuming demand stays at or near current levels, that should keep this healthcare giant on track for growth.
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Eric Volkman does not have a position in any of the stocks mentioned. The Motley Fool recommends HCA Healthcare. The Motley Fool has a disclosure policy.
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