Can HCA maintain its EPS momentum in 2025?

**HCA's prospects for maintaining EPS momentum in 2025 appear challenging** based on several factors:

1. **Recent Performance**: HCA's diluted EPS for 2024 Q4 was $5.63, which represented a 5.06% decline year-over-year. This recent decline, coupled with a 9.4% decrease in net income, suggests that the company is facing headwinds that could impact future EPS growth.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|HCA|HCA.N|HCA Healthcare|2024 Q1|1.7339E10|1.802E9|5.93|169|
|HCA|HCA.N|HCA Healthcare|2024 Q2|1.7492E10|1.687E9|5.53|169|
|HCA|HCA.N|HCA Healthcare|2024 Q3|1.7487E10|1.482E9|4.88|169|
|HCA|HCA.N|HCA Healthcare|2024 Q4|1.8285E10|1.686E9|5.63|169|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|HCA|HCA.N|HCA Healthcare|2024 Q1|16.785482825664293|11.211596433840036|22.268041237113405|169|
|HCA|HCA.N|HCA Healthcare|2024 Q2|19.475920679886684|10.283084294811172|28.904428904428908|169|
|HCA|HCA.N|HCA Healthcare|2024 Q3|16.235294117647058|7.857891815210016|24.8081841432225|169|
|HCA|HCA.N|HCA Healthcare|2024 Q4|-9.403546480386888|5.675316419118072|-5.059021922428328|169|

2. **Market Conditions and Challenges**:
- HCA has been affected by policy uncertainties and natural disasters, such as Hurricanes Helene and Milton, which have impacted its revenues and margins. These factors could continue to influence its financial performance.
- The healthcare industry is facing challenges such as labor shortages and regulatory requirements, which can pressure profitability. These factors are likely to persist, affecting HCA's ability to maintain EPS growth.
3. **Strategic Initiatives**: Despite the challenges, HCA is actively pursuing strategic growth initiatives, including expanding its market presence and investing in technology. These initiatives could positively influence future EPS growth if successful.
4. **Financial Projections**: HCA's guidance for 2025 projects a 6% EBITDA growth, which is a more conservative estimate than the 9% growth achieved in 2024. This suggests that the company is being cautious in its financial projections, which may not fully reflect its potential for EPS growth.
5. **Dividend and Shareholder Returns**: HCA has increased its dividend to $0.72 per share, indicating a commitment to returning value to shareholders. However, the low yield and inconsistent dividend history may impact investor perceptions and affect the company's ability to maintain momentum based on EPS alone.

In conclusion, while HCA's strategic initiatives and past performance provide some basis for optimism, the current market conditions, recent declines in EPS, and cautious financial projections suggest that maintaining EPS momentum in 2025 could be challenging. The company's ability to navigate policy and operational challenges and sustain its profitability will be critical in determining its future EPS growth.