HCA Holdings Beats on Both Top and Bottom Lines

Before you go, we thought you'd like these...
Before you go close icon

HCA Holdings (NYS: HCA) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), HCA Holdings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.


Margins expanded across the board.

Revenue details
HCA Holdings recorded revenue of $9.20 billion. The six analysts polled by S&P Capital IQ predicted revenue of $8.93 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $8.06 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.18. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.98 per share. GAAP EPS of $1.18 for Q1 were 127% higher than the prior-year quarter's $0.52 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.0%, 70 basis points better than the prior-year quarter. Operating margin was 15.2%, 120 basis points better than the prior-year quarter. Net margin was 5.9%, 290 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.82 billion. On the bottom line, the average EPS estimate is $0.80.

Next year's average estimate for revenue is $35.25 billion. The average EPS estimate is $3.58.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 51 rating the stock outperform, and eight members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give HCA Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HCA Holdings is outperform, with an average price target of $32.20.

If you're interested in health care stocks like HCA Holdings, you might want to expand your horizons to find maximum returns. Follow the money and meet a prime candidate for major returns in our new report, "Discover the Next Rule-Breaking Multibagger." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners