Oppenheimer Cuts Price Target on HCA Holdings (HCA) Following 3Q Results Preview
Oppenheimer maintained an Outperform rating on HCA Holdings (NYSE: HCA), and cut the price target to $100.00 (from $105.00), following a 3Q results preview. Revenues are expected to be $9.856B (Street consensus: $9.85B) as same-store adj-admissions growth was 3.6%.
Analyst Michael Wiederhorn commented, "HCA previewed 3Q15 results, expecting EPS of $1.17 compared to our estimate of $1.24 and Street consensus of $1.22. Results include $2M (<$0.01/shr) due to the loss on sale of facilities. While the company continued to see strong top-line growth, a higher use of contract labor and a worse-than-expected payor mix drove the miss. Nevertheless, the company essentially maintained its full-year outlook, with expectations for adjusted EBITDA of $7.85B and EPS of $5.20-5.25 (prior expectations were for the high-end of both $7.55-7.85B and $4.90-5.30, respectively). Following the announcement, we are lowering our FY2015/16 EPS estimates to $5.22/$5.76 from $5.29/$5.83, and our price target to $100 from $105."
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Shares of HCA Holdings closed at $76.02 yesterday.