HCA Healthcare's Q4 Earnings Beat Estimates Despite Hurricane Impact; Announces $10 Billion Share Buyback Program

HCA Healthcare Inc. (HCA) reported fourth-quarter earnings that surpassed Wall Street estimates, despite the impact of recent hurricanes. The hospital operator also announced a $10 billion share buyback program, which could boost investor confidence and potentially increase the stock price. Here's a closer look at the company's performance and the implications of its latest moves.

Q4 Earnings Beat Estimates Despite Hurricane Impact

HCA Healthcare reported net income of $1.44 billion, or $5.63 per diluted share, compared to $1.61 billion, or $5.93 per diluted share, in the same period last year. Excluding the impact of hurricanes Helene and Milton, which resulted in additional expenses and lost revenue of around $200 million or $0.60 per diluted share, the company's earnings would have been higher than the previous year.

Revenue rose to $18.29 billion from $17.30 billion, also beating analyst estimates. Same-facility admissions increased 3% year-over-year, while same-facility equivalent admissions increased 3.1%. Same-facility emergency room visits increased by 2.4%, same-facility inpatient surgeries increased by 2.8%, and same-facility outpatient surgeries declined by 1.3%. Same facility revenue per equivalent admission increased by 2.9%.



Announces $10 Billion Share Buyback Program

HCA Healthcare's board of directors authorized an additional share repurchase program for up to $10 billion of the company's outstanding shares. This move signals to the market that the company's management believes the stock is undervalued and is willing to invest in itself by purchasing its own shares. The share buyback program could potentially increase demand for the remaining shares, leading to a higher stock price.

Outlook and Market Reaction

HCA Healthcare forecasts 2025 EPS of $24.05-$25.85 versus a consensus of $24.58, with a sales outlook of $72.8 billion-$75.8 billion versus a consensus of $74.76 billion. The company expects a 2025 net profit of $5.85 billion-$6.29 billion and adjusted EBITDA of $14.30 billion-$15.10 billion. Capital expenditures for 2025, excluding acquisitions, are estimated to be approximately $5.0 billion to $5.2 billion.

Despite the positive earnings results and the share buyback announcement, HCA Healthcare stock was down 0.463% at $323.86 at last check Friday. This decline could be attributed to various factors, such as market conditions, investor sentiment, or other company-specific news. However, it is essential to note that the share buyback program was just announced, and its impact on the stock price may not be immediately apparent.

In conclusion, HCA Healthcare's Q4 earnings beat estimates despite the impact of recent hurricanes, and the company announced a $10 billion share buyback program. These developments suggest that the hospital operator is well-positioned for future growth and is committed to returning value to shareholders. As the market digests this news, investors will be watching to see if the stock price responds to the company's positive earnings and the share buyback program.