Barclays Maintains an 'Overweight' on HCA Holdings (HCA); Thoughts on Accounting Change for HITECH Revenue
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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 $30.00.
Barclays analyst, Adam Feinstein, said, "HCA filed an 8-K to announce that it revised its accounting for HITECH incentive payments based on SEC guidance, leading to a delay in revenue recognition of these payments. In a nutshell, HCA will recognize less revenue than expected in Q4'11, but still anticipates receiving these payments in 2012. The net result is a $0.28 reduction in Q4'11 EPS and a $210 million impact to revenue and EBITDA, but, HCA confirmed that there will be no impact on cashflow from operations. We suggest that this is a timing issue rather than a reduction in the "earnings power" of HCA over the next year. Finally, HITECH has been a source of confusion for the group following the recent Q3 earnings season, so we expect a continued level of focus on better understanding this issue. With this announcement we are reducing our 2011 EPS estimate to $2.64 (down from $2.92)."
For an analyst ratings summary and ratings history on HCA Holdings click here. For more ratings news on HCA Holdings click here.
Shares of HCA Holdings closed at $25.21 yesterday.
Barclays analyst, Adam Feinstein, said, "HCA filed an 8-K to announce that it revised its accounting for HITECH incentive payments based on SEC guidance, leading to a delay in revenue recognition of these payments. In a nutshell, HCA will recognize less revenue than expected in Q4'11, but still anticipates receiving these payments in 2012. The net result is a $0.28 reduction in Q4'11 EPS and a $210 million impact to revenue and EBITDA, but, HCA confirmed that there will be no impact on cashflow from operations. We suggest that this is a timing issue rather than a reduction in the "earnings power" of HCA over the next year. Finally, HITECH has been a source of confusion for the group following the recent Q3 earnings season, so we expect a continued level of focus on better understanding this issue. With this announcement we are reducing our 2011 EPS estimate to $2.64 (down from $2.92)."
For an analyst ratings summary and ratings history on HCA Holdings click here. For more ratings news on HCA Holdings click here.
Shares of HCA Holdings closed at $25.21 yesterday.
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