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HCA Healthcare shares slump as group flags impact of hurricanes on annual results

investing.com 25/10/2024 - 12:04 PM

HCA Healthcare Shares Drop Due to Hurricane Impacts

Investing.com — Shares in HCA Healthcare (NYSE:HCA) sank in premarket US trading after the healthcare facilities operator warned that it expects its full-year financial estimates to be at the lower end of its guided ranges due to the impact of two recent major hurricanes.

In an earnings release on Friday, Nashville-based HCA flagged ongoing additional expenses and loss of revenues in its current quarter of approximately $200 million to $300 million, or $0.60 to $0.90 per diluted share.

Hurricane Helene, which hit parts of the US South in September, impacted its North Carolina facilities, while Hurricane Milton — a devastating storm earlier this month — hit certain sites in Florida, HCA said. The forecasts do not include any potential insurance recoveries the company may receive, it noted.

Due to the hurricanes, HCA now projects results will "likely" be in the lower half of its previously-announced guidance ranges of revenue of $69.75 million to $71.75 million and net income of $5.675 million to $5.975 million.

For the 2025 fiscal year, the group added it "anticipates some ongoing impact" from the hurricanes, although it believes these ongoing effects will be "manageable." It currently sees 2025 diluted earnings per share and adjusted core income being near "or slightly above" the upper end of its long-term growth targets.

In its third quarter, HCA posted adjusted earnings before interest, taxes, depreciation and amortization of $3.27 billion, roughly in line with estimates. However, earnings per share of $4.88 and revenue of $17.49 billion both missed Wall Street expectations.

Hurricane Helene's impact on some facilities in Florida, Georgia, and North Carolina led to additional expenses and revenue losses estimated at $50 million, or $0.15 per diluted share, HCA said.




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