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HCA Healthcare Tops First-Quarter Estimates; Respiratory Admissions Fall

-- HCA Healthcare's (HCA) first-quarter results exceeded market expectations, though the hospital operator said it did not see its usual seasonal lift in admissions amid declines in respiratory activity.

The company on Friday reported adjusted earnings of $7.15 a share for the quarter ended March 31, up from $6.45 the year before, surpassing the FactSet-polled consensus of $7.12. Revenue improved 4.3% to $19.11 billion, topping the Street's view for $19.09 billion.

HCA Healthcare didn't experience its typical increase in seasonal volume during the quarter, mainly due to respiratory activity, the company said. Admissions related to respiratory issues dropped 42% on a yearly basis, while respiratory-related emergency room visits slipped 32%. The winter storm in January also weighed on quarterly volume in certain markets, it said.

The unfavorable volume headwinds were mostly offset by recognition of certain Medicaid supplemental programs, which weren't reflected in its initial full-year outlook, according to the company.

HCA Healthcare's stock fell 7.4% in Friday trade, extending its year-to-date loss to 7.6%.

"The start of the year presented a dynamic environment for HCA Healthcare," Chief Executive Sam Hazen said in a statement.

Same facility admissions edged up 0.9%, while emergency room visits nudged 0.3% higher, the company said. Same facility inpatient surgeries slipped 0.3%, while outpatient surgeries declined 1.7%.

The firm continues to project net income to come in between $29.10 and $31.50 a share on a revenue range of $76.5 billion to $80 billion for 2026. The Street is looking for EPS of $30.39 and sales of $78.6 billion for the year.

Price: $448.41, Change: $-25.62, Percent Change: -5.40%

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