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HCA Healthcare, Inc. 8-K Report, Financial Results (Oct 25, 2024)

Reports
Earnings & Results·Regulation FD·Other Events+1
Filing Date
Filed October 25, 2024
Period End
October 25, 2024
Security
HCA
In the record · 2016–202610-K1110-Q328-K144

HCA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed October 25, 2024. Cited figures are marked; the original filing is the authoritative source.

HCA Healthcare's third quarter 2024 results (reported October 25, 2024) showed strong top-line and earnings growth.

Revenues rose to $17.487 billiona from $16.213 billion (about 7.9%), and net income attributable to HCA reached $1.270 billion, or $4.88 per diluted share, versus $3.91 a year earlier. Adjusted EBITDA increased to $3.267 billion from $2.880 billion, with the margin expanding to 18.7% from 17.8%. Volume growth was healthy, with same facility admissions up 4.5% and emergency room visits up 4.6%, while revenue per equivalent admission rose 2.5%.

Outpatient surgeries declined 2.0%, a softer spot in the mix. Note that the prior-year quarter included a roughly $397 millionb Florida directed payment benefit, so the year-over-year comparison is flattered by a non-recurring item in the base period. The main near-term headwind is Hurricanes Helene and Milton.

HCA estimated a $50 millionc (about $0.15 per share) hit in Q3 and expects a further $200 to $300 million (about $0.60 to $0.90 per share) impact in Q4, before any insurance recoveries. Despite this, management reaffirmed 2024 guidance but now expects results in the lower half of the ranges. Guidance calls for Adjusted EBITDA of $13.75 to $14.25 billion and diluted EPS of $21.60 to $22.80.

Capital expenditures were raised to about $5 billiond. Management also gave early 2025 commentary, suggesting diluted EPS and Adjusted EBITDA growth near or slightly above the upper end of its long-term ranges. Capital allocation remained shareholder-friendly.

HCA repurchased 4.948 million shares for $1.795 billion in the quarter, with $2.433 billion left on its authorization, and declared a quarterly dividend of $0.66 per share payable December 27, 2024. Leverage is elevated, however: total debt was $42.965 billion against cash of $2.888 billion, and the balance sheet shows a stockholders' deficit attributable to HCA of $(2.182) billion. Operating cash flow was strong at $3.515 billion in the quarter, up from $2.479 billion a year earlier.

02—Key points

Key Highlights

  1. Q3 2024 revenue grew about 7.9% year over year to $17.487 billion, and diluted EPS rose 25% to $4.88 from $3.91.
  2. Adjusted EBITDA increased about 13% to $3.267 billion, with the margin expanding 90 basis points to 18.7%.
  3. Same facility admissions rose 4.5% and ER visits rose 4.6%, though outpatient surgeries fell 2.0%.
  4. Hurricanes Helene and Milton cost about $50 million in Q3 and are expected to cost $200 to $300 million in Q4, or $0.60 to $0.90 per share.
  5. 2024 guidance was reaffirmed but is now expected in the lower half of the ranges; capex was raised to about $5 billion.
  6. Early 2025 outlook points to EPS and Adjusted EBITDA growth near or slightly above the upper end of long-term ranges.
  7. Returned capital through $1.795 billion of Q3 buybacks and a $0.66 quarterly dividend, but total debt remains high at about $43 billion.

03—Questions

Frequently Asked Questions

  1. How did HCA perform in Q3 2024 compared with Q3 2023?

    Revenue rose to $17.487 billion from $16.213 billion, and net income attributable to HCA rose to $1.270 billion ($4.88 per diluted share) from $1.079 billion ($3.91). Adjusted EBITDA increased to $3.267 billion from $2.880 billion. The prior-year quarter included a $397 million Florida directed payment benefit, which flatters the year-over-year comparison.

  2. How much will the hurricanes affect HCA's financial results?

    HCA estimated a $50 million (about $0.15 per diluted share) impact in Q3 2024. For Q4 2024, it expects $200 to $300 million (about $0.60 to $0.90 per share) from Hurricane Helene's effects on North Carolina facilities and Hurricane Milton's effects on Florida facilities. These figures exclude potential insurance recoveries, and HCA expects some ongoing Helene impact in 2025.

  3. Did HCA change its 2024 guidance?

    HCA reaffirmed its 2024 guidance ranges, including Adjusted EBITDA of $13.75 to $14.25 billion and diluted EPS of $21.60 to $22.80. However, it now expects results to fall in the lower half of those ranges due to the hurricanes. Capital expenditures for 2024 were estimated at about $5 billion, excluding acquisitions.

  4. What is HCA's capital return and balance sheet position?

    In Q3, HCA repurchased 4.948 million shares for $1.795 billion and had $2.433 billion remaining under its authorization. It declared a $0.66 quarterly dividend payable December 27, 2024. As of September 30, 2024, total debt was $42.965 billion against $2.888 billion of cash, and HCA had $7.986 billion of credit facility availability. The stockholders' deficit attributable to HCA was $(2.182) billion.

  5. What does HCA's early 2025 outlook suggest?

    HCA expects 2025 diluted EPS and Adjusted EBITDA growth to be near, or slightly above, the upper end of its long-term growth ranges. It noted ongoing but manageable Helene effects on North Carolina facilities. This outlook is preliminary and subject to completion of the 2025 planning process, and management planned to provide more commentary on the earnings call.

04—Continue

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