The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HCA Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins contracted.
HCA Holdings chalked up revenue of $8.43 billion. The 19 analysts polled by S&P Capital IQ expected sales of $8.89 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $8.34 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 $0.91. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.83 per share. GAAP EPS of $0.68 for Q4 were 84% lower than the prior-year quarter's $4.25 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 59.5%, 1,750 basis points better than the prior-year quarter. Operating margin was 12.3%, 290 basis points worse than the prior-year quarter. Net margin was 3.3%, 1,990 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $9.29 billion. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $37.21 billion. The average EPS estimate is $3.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 62 members out of 68 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 $35.93.
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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 of Motley 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.