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HCA Healthcare Shares Gain 15% on Strong Q2 Performance and Raised FY Outlook

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HCA Healthcare shares established a new 52-week high after the company reported a greater than 30% increase in YoY revenue in Q2/21.

Hospital and medical facilities operator HCA Healthcare Inc. (HCA:NYSE) today announced financial and operating results for the second quarter of 2021 ended June 30, 2021.

HCA Healthcare's CEO Sam Hazen led off with stating, "With the effects of the pandemic moderating in the second quarter, we experienced a strong rebound in demand for healthcare services…We continue to invest aggressively in our strategic agenda, which is building greater clinical capabilities to serve our communities while also developing more comprehensive enterprise resources to support caregivers and differentiate our local networks."

The company indicated in the release that Q2/21 revenues increased by 30.42% to $14.435 billion, up from $11.068 billion in Q2/20.

The firm additionally reported that in Q2/21 it earned net income attributable to HCA Healthcare Inc. totaling $1.450 billion, or $4.36 per diluted share, versus $1.079 billion, or $3.16 per diluted share in Q2/20.

HCA stated that adjusted EBITDA in Q2/21 totaled $3.219 billion, compared to $2.666 billion in Q2/20, and noted that the Q2/20 data included $822 million in government stimulus income, which it subsequently reversed in Q3/20.

The company reported that during Q2/21, same facility admissions increased by 17.5% and same facility equivalent admissions also rose by 26.8%, versus those in Q2/20. Similarly, the firm indicated that same facility emergency room visits increased by 40.5% during the same corresponding period.

HCA added that in Q2/21, both same facility inpatient and outpatient surgeries increased by 15.0% and 52.5%, respectively, compared to those procedures performed in Q2/20.

The firm stated that for H1/21, it posted total revenue in the amount of $28.412 billion, versus $23.929 billion in H1/20. During the same period HCA advised that it earned net income attributable to HCA Healthcare Inc. of $2.873 billion, or $8.50 per diluted share, compared to $1.660 billion, or $4.84 per diluted share in H1/20.

HCA listed that in Q2/21 it repurchased 11.261 million of its common shares at a total cost of $2.287 billion and stated that as of the end of Q2/21 it still may purchase up to an additional $4.987 billion under its existing repurchase authorization.

The company advised also that its Board of Directors declared a quarterly cash dividend of $0.48 per common share payable to shareholders of record as of September 16, 2021 on September 30, 2021.

HCA provided some revised forward guidance and stated that for FY/21 it now expects Revenues of $57-58 billion, Adjusted EBITDA of $12.1-12.5 billion and diluted EPS of $16.30-17.10 per share.

HCA Healthcare is based in Nashville, Tenn., and owns and operates hospitals and related healthcare entities in 20 U.S. states and the U.K. The company indicated that as of June 30, 2021, it operates 187 acute care, psychiatric and rehabilitation hospitals and about 2,000 other medical care sites including diagnostic and imaging centers, freestanding ERs, both walk-in and physician clinics, surgery centers and urgent care centers.

HCA Healthcare started the day with a market cap of around $73.3 billion with approximately 336.9 million shares outstanding. HCA shares opened nearly 10% higher today at $239.10 (+$21.47, +9.87%) over yesterday's $217.63 closing price and reached a new 52-week high price this morning of $252.00. The stock has traded today between $237.68 to $252.00 per share and closed the day trading at $248.90 (+$31.27, +14.37%).


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