Sriparna Roy and Sneha S.K.
(Reuters) – HCA Healthcare on Friday beat Wall Street forecasts for quarterly profit and revenue, helped by rising patient hospitalizations due to demand for medical services.
However, the largest commercial hospital operator in the United States left its full-year forecast unchanged, causing the company’s shares to fall 4.5%.
At least two analysts said maintaining the outlook could disappoint investors after HCA (NYSE:) reported better-than-expected results.
The forecast “likely reflects a conservative stance” from HCA, Stephens analyst Scott Fidel said.
Analysts say demand for health care remains high even after the backlog caused by COVID has been cleared. Some attribute this to the general aging of the population in the United States, while others also say a shift in preference for more efficient settings, such as ambulatory care centers that do not require patients to stay overnight, has also contributed to demand.
According to Sam Hazen, HCA’s chief executive officer, the company’s results were driven primarily by strong sales growth.
In the first quarter, the Nashville, Tennessee-based hospital operator saw a 6.2% increase in same-facility admissions and a 7.2% increase in emergency room visits.
Similar facility revenue per equivalent admission increased 3.5%.
HCA reported quarterly revenue of $17.34 billion, beating estimates of $16.78 billion.
The company confirmed its annual forecast.
HCA reported adjusted earnings of $5.36 per share for the quarter. Analysts on average expected earnings of $5.01 per share, according to LSEG.