What insights does HCA's EPS history reveal?

HCA Healthcare's EPS history reveals several key insights into the company's financial performance and broader market dynamics:

1. **Growth Trajectory**: HCA's EPS has shown a compounded annual growth rate (CAGR) of 15.9% over the last five years. This indicates a strong upward trend in profitability, which is a positive signal for investors.
2. **Recent Challenges**: The most recent quarter (Q4 2024) experienced a dip in EPS, with the company reporting $5.63, missing the estimated $6.13. This shortfall was due to factors such as revenue losses from Hurricanes Helene and Milton, which impacted facilities in North Carolina and Florida, and labor cost pressures.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|HCA|HCA.N|HCA Healthcare|2024 Q1|0.35|5.93|169|
|HCA|HCA.N|HCA Healthcare|2024 Q2|0.6|5.53|169|
|HCA|HCA.N|HCA Healthcare|2024 Q3|-0.07|4.88|169|
|HCA|HCA.N|HCA Healthcare|2024 Q4|0.08|5.63|169|

3. **Market Perception vs. Reality**: Despite the challenges, HCA's share price has seen a significant increase over the past five years, with a 318% gain and an average annual increase of 33% in the share price, compared to an 18% annual growth in EPS. This suggests that the market may have a higher opinion of the company than its earnings alone would indicate, potentially driven by factors such as its strong market position and strategic expansions.
4. **Revenue Growth**: HCA's revenue has also been growing, with Q4 2024 revenue exceeding analyst estimates, up 5.7% year-over-year. This indicates a healthy business operation and the company's ability to generate income.
5. **Dividend and Shareholder Returns**: HCA has been actively returning value to shareholders, with significant share repurchases and a history of dividend payments. These actions reflect the company's commitment to shareholder value and can influence investor sentiment positively.

In conclusion, HCA's EPS history demonstrates a strong growth trajectory with some recent challenges, while also highlighting the company's resilience and market confidence, supported by revenue growth and shareholder return initiatives.