The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HCA Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, net margins grew.
HCA Holdings reported revenue of $8.89 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $8.97 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $8.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. GAAP EPS of $0.78 for Q3 were much higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.0%, 90 basis points worse than the prior-year quarter. Operating margin was 12.5%, 30 basis points better than the prior-year quarter. Net margin was 4.0%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.97 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $36.24 billion. The average EPS estimate is $3.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 47 members out of 54 rating the stock outperform, and seven members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 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 $33.52.
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