What drove HCA's EPS surprise in Q2 2024?

HCA's EPS surprise in Q2 2024 can be attributed to several key factors: 1. **Revenue Growth**: HCA reported a revenue of $17.34 billion for Q1 2024, which represents a significant increase of 11.2% compared to the same quarter in the previous year ($15.59 billion). This growth in revenue exceeded analysts' estimates of $16.79 billion. The revenue surprise can be attributed to stronger-than-expected patient admissions and higher revenue per equivalent admission. 2. **Cost Management**: HCA's effective cost management also contributed to the EPS surprise. Despite the increase in revenue, the company's net margin remained at 8.20%. This indicates that HCA was able to keep its costs under control, which helped in maintaining profitability and exceeding earnings expectations. 3. **Investment in Facilities and Equipment**: HCA continued to invest in facilities and equipment, with capital expenditures reaching $1.118 billion. These investments are crucial for maintaining and expanding its hospital network, which in turn supports its revenue growth and profitability. In conclusion, HCA's EPS surprise in Q2 2024 can be attributed to a combination of revenue growth, effective cost management, and strategic investments in facilities and equipment. These factors collectively contributed to the company's strong financial performance and exceeded analysts' expectations.