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.
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 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.
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.)
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.
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.
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