Barclays Maintains an 'Overweight' on HCA Holdings (HCA); Comments on Supplemental Disclosures from June Qtr
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Price: $404.68 -1.71%
Rating Summary:
23 Buy, 11 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on HCA Holdings (NYSE: HCA) price target of $40.00.
Barclays analyst says, "Last night, HCA hosted a conference call to discuss more details about the acuity issues it highlighted with the June quarter results. We note that the company provided details on the breakout of $74 million which impacted Medicare revenue in the quarter, $37 million of which is expected to impact future quarters. Of the $74 million affecting Q211, $28 million was associated with lower acuity. HCA noted that weakness in cardiovascular surgery volumes contributed roughly 50% of the drop in acuity with some physician attrition impacting results in the quarter. And while HCA noted that it expects to address the physician attrition issue, we note that in the near term, the lower acuity from weak cardiovascular surgeries is expected to impact results. We note that Medicare case mix remained weak thus far in Q311, suggesting that Medicare revenues will likely be under pressure in Q311 as well."
"While the Medicare acuity issues continue, we note that the company appears to be managing through this environment as it reiterated its 3-5% EBITDA guidance, including the benefit for HI-Tech payments. In a nutshell, we are pleased that HCA confirmed guidance and highlight that HCA believes that it can mitigate some the top line pressures through identifying cost cuts in the near term."
For more ratings news on HCA Holdings click here and for the rating history of HCA Holdings click here.
Shares of HCA Holdings closed at $18.40 yesterday.
Barclays analyst says, "Last night, HCA hosted a conference call to discuss more details about the acuity issues it highlighted with the June quarter results. We note that the company provided details on the breakout of $74 million which impacted Medicare revenue in the quarter, $37 million of which is expected to impact future quarters. Of the $74 million affecting Q211, $28 million was associated with lower acuity. HCA noted that weakness in cardiovascular surgery volumes contributed roughly 50% of the drop in acuity with some physician attrition impacting results in the quarter. And while HCA noted that it expects to address the physician attrition issue, we note that in the near term, the lower acuity from weak cardiovascular surgeries is expected to impact results. We note that Medicare case mix remained weak thus far in Q311, suggesting that Medicare revenues will likely be under pressure in Q311 as well."
"While the Medicare acuity issues continue, we note that the company appears to be managing through this environment as it reiterated its 3-5% EBITDA guidance, including the benefit for HI-Tech payments. In a nutshell, we are pleased that HCA confirmed guidance and highlight that HCA believes that it can mitigate some the top line pressures through identifying cost cuts in the near term."
For more ratings news on HCA Holdings click here and for the rating history of HCA Holdings click here.
Shares of HCA Holdings closed at $18.40 yesterday.
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