Traders Buying HCA (HCA) Shares as Q4 EPS Surges, FY12 Guidance Looks Solid
HCA Holdings, Inc. (NYSE: HCA) shares are trading up 4.5 percent Monday following the release of fourth-quarter results and FY12 guidance earlier.
Quarterly revenue increased 8.5 percent to $7.769 billion and fell short of the Street’s consensus of $8.42 billion. Same facility equivalent admissions rose 3.2 percent, while same facility admissions increased 2.5 percent and same facility emergency room visits increased 4.4 percent in the fourth quarter compared to the prior year period.
Adjusted EBITDA increased 13.2 percent year over year to $1.639 billion.
Net income totaled $1.935 billion, or $4.25 per diluted share, compared to $283 million, or $0.65 per diluted share, in the fourth quarter of 2010. On an adjusted basis, earnings totaled $0.94 per share and topped the Street’s consensus of $0.76 per share.
Cash flow from operations increased to $1.387 billion, while total cash and cash equivalents rose $14 million over the quarter to $373 million.
“The Company had a strong performance in the quarter and for 2011, showing substantial growth in a number of key areas,” said Richard M. Bracken, Chairman and Chief Executive Officer. “We saw continued and favorable growth in patient volumes, advancement in our clinical quality agenda, the acquisition of complementary assets in key markets and efficient operation of our facilities. We believe we are well positioned as we enter 2012.”
HCA also announced its Board of Directors approved a special cash dividend of $2.00 per share to be paid to shareholders of record as of February 16, 2012 with a payment date of February 29, 2012. The dividend is expected to be funded through existing cash and borrowings under the Company’s credit facilities.
The company’s board offered fiscal 2012 guidance with a revenue range of $32 to $33 billion, an adjusted EBITDA range of $6.2 to $6.45 billion and an adjusted EPS range of $3.35-$3.55 billion. The Street forecasts earnings of $3.46 per share for fiscal 2012 as sales are expected to grow 8.1 percent to $35.1 billion.
Quarterly revenue increased 8.5 percent to $7.769 billion and fell short of the Street’s consensus of $8.42 billion. Same facility equivalent admissions rose 3.2 percent, while same facility admissions increased 2.5 percent and same facility emergency room visits increased 4.4 percent in the fourth quarter compared to the prior year period.
Adjusted EBITDA increased 13.2 percent year over year to $1.639 billion.
Net income totaled $1.935 billion, or $4.25 per diluted share, compared to $283 million, or $0.65 per diluted share, in the fourth quarter of 2010. On an adjusted basis, earnings totaled $0.94 per share and topped the Street’s consensus of $0.76 per share.
Cash flow from operations increased to $1.387 billion, while total cash and cash equivalents rose $14 million over the quarter to $373 million.
“The Company had a strong performance in the quarter and for 2011, showing substantial growth in a number of key areas,” said Richard M. Bracken, Chairman and Chief Executive Officer. “We saw continued and favorable growth in patient volumes, advancement in our clinical quality agenda, the acquisition of complementary assets in key markets and efficient operation of our facilities. We believe we are well positioned as we enter 2012.”
HCA also announced its Board of Directors approved a special cash dividend of $2.00 per share to be paid to shareholders of record as of February 16, 2012 with a payment date of February 29, 2012. The dividend is expected to be funded through existing cash and borrowings under the Company’s credit facilities.
The company’s board offered fiscal 2012 guidance with a revenue range of $32 to $33 billion, an adjusted EBITDA range of $6.2 to $6.45 billion and an adjusted EPS range of $3.35-$3.55 billion. The Street forecasts earnings of $3.46 per share for fiscal 2012 as sales are expected to grow 8.1 percent to $35.1 billion.