HCA Healthcare Inc.’s stock fell 9% Friday, after the hospital operator’s third-quarter earnings fell short of estimates as it booked losses and lost revenue when Hurricane Helene disrupted operations at facilities in affected states.
The stock was on track for its worst one-day percentage decline in more than two years, according to Dow Jones Market Data. The last time it fell this much was April 22, of 2022, when it closed down 21%.
Nashville, Tenn.-based HCA HCA-1.01% had net income of $1.270 billion, or $4.88 a share, for the quarter, up from $1.079 billion, or $3.91 a share, in the year-earlier period. The company said Hurricane Helene shaved an estimated 15 cents off EPS as facilities in affected states were hit, while a loss on the sales of facilities shaved off another 2 cents.
Revenue rose to $17.487 billion from $16.213 billion a year ago.
The FactSet consensus was for EPS of $4.96 and revenue of $17.540 billion.
Same-facility admissions rose 4.5%, and same-facility equivalent admissions rose 4.5%. Same-facility emergency-room visits rose 4.6%, while same-facility inpatient surgeries rose 1.6% and same-facility outpatient surgeries fell 2%.
On a call with analysts, Chief Executive Sam Hazen said two of the company’s hospitals are still struggling with the aftermath of the hurricanes, which is expected to lead to “significant” expenses and lost revenue through the rest of the year.
HCA is expecting Hurricane Helene’s impact on facilities in North Carolina and Hurricane Milton’s impact on facilities in Florida in October to shave 60 cents to 90 cents off fourth-quarter EPS.
For the full year, it expects earnings to come in at the low end of its guidance ranges. But the company is more upbeat for 2025, when it expects to be at or slightly above the higher end of ranges.
The company expects full-year EPS to range from $21.60 to $22.80 and for revenue to range from $69.750 billion to $71.750 billion. The FactSet consensus is for EPS of $22.48 and revenue of $70.832 billion.
The stock has gained 33% in the year to date, while the S&P 500 SPX0.40% has gained 22.5%.
