HCA Holdings Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

HCA Holdings (NYS: HCA) reported earnings on May 2. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.


Gross margins expanded, operating margins shrank, net margins dropped.

Revenue details
 HCA Holdings reported revenue of $9.19 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $9.38 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.79. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.82 per share. Non-GAAP EPS of $0.79 for Q1 were 33% lower than the prior-year quarter's $1.18 per share. GAAP EPS of $0.74 for Q1 were 37% lower than the prior-year quarter's $1.18 per share.

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 53.6%, much better than the prior-year quarter. Operating margin was 13.5%, 300 basis points worse than the prior-year quarter. Net margin was 4.1%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $9.49 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $37.75 billion. The average EPS estimate is $3.13.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 74 members out of 80 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give HCA Holdings a green thumbs-up, and one 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 $43.71.

Is HCA Holdings the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

The article HCA Holdings Misses on the Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement