However, HCA Healthcare’s Annual Forecast Remains Unchanged Despite a Strong Quarter

(CTN News) – Shares of the largest US for-profit hospital operator, HCA Healthcare, fell nearly 5% on Friday after the company topped Wall Street expectations for its quarterly profit and revenue, but kept its annual forecast at the same level.

In spite of the fact that analysts said the forecast may disappoint investors, they called it “conservative” after a surge in medical services demand late last year, partly due to the COVID-induced delays in the delivery of the service.

In a conference call with members of his senior team, CEO Samuel Hazen commented on how the demand for HCA healthcare will continue to be strong over the next year, although he expressed an optimism that the demand may not be at this particular level over the next year.

In Stephens analyst Scott Fidel’s view, the unchanged forecast indicates that HCA Healthcare (NYSE:HCA) might be taking a conservative stance towards the future.

In addition to an aging population, analysts expect hospitals to benefit from the shift in preference for care centers that do not require patients to stay overnight as well as the shift in the preference for ambulatory care centers.

According to HCA’s January report, earnings per share in 2024 are projected to fall within the range of $19.70 to $21.20 and revenue is projected to range between $67.75 billion and $70.25 billion, with earnings per share in the range of $19.70 to $21.20.

Tenet HCA Healthcare (NYSE:THC) and Universal Health Services (NYSE:UHS) Services shares fell between 1% and 3% in early Friday morning trading as the shares of the rivals declined between 1% and 3%.

It is believed that HCA Healthcare quarterly beat was aided by both higher patient admissions, which are due to a higher demand for HCA healthcare services, and reduced staffing costs as a result of fewer staff shortages.

Among the company’s statistics, there was an increase in inpatient admissions, which means that the patient has been admitted to the hospital in order to be treated while staying there for a period of time.

In the first quarter ending March 31, the number of inpatient surgeries performed at the same facility increased by 1.7%, while the number of outpatient surgeries performed at the same facility declined by 2.1%.

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