HCA Holdings Q4 Results Top Estimates; Sees FY16 Profit Above View

(RTTNews) - HCA Holdings Inc. (HCA) reported that its net income attributable to the company for the fourth-quarter totaled $582 million or $1.40 per share, up from $527 million, or $1.19 per share, in the fourth quarter of 2014.

Results for the fourth quarter of 2015 include losses on sales of facilities of $7 million, or $0.01 per share, losses on retirement of debt of $10 million, or $0.02 per diluted share, and legal claim costs of $172 million, or $0.26 per share.

Results for the fourth quarter of 2014 included gains on sales of facilities of $9 million, or $0.01 per share, and losses on retirement of debt of $109 million, or $0.15 per diluted share.

Net income attributable to the company, excluding losses or gains on sales of facilities, losses on retirement of debt and legal claim costs, rose to $1.69 from $1.33 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.40 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues in the fourth quarter totaled $10.249 billion, compared to $9.636 billion in the fourth quarter of 2014. Wall Street expected revenues of $10.16 billion.

Fourth quarter 2014 results included a $68 million increase in Medicaid revenues related to the reversal of the Texas Medicaid Waiver Program adjustment to reduce revenues that was recorded in the third quarter of 2014.

Fourth quarter revenue growth was driven by solid volume and higher revenue per equivalent admission, as same facility case mix, or acuity, increased 2.1 percent compared to the prior year.

Same facility equivalent admissions increased 2.9 percent while same facility admissions increased 1.6 percent in the fourth quarter of 2015 compared to the fourth quarter of 2014. Same facility emergency room visits increased 3.6 percent in the fourth quarter of 2015 compared to the prior year period.

For 2016, the company expects adjusted earnings per share to be in the range of $6.00 to $6.45 per share, revenues of $41.5 billion to $42.5 billion. Wall Street currently is looking for fiscal year 2016 earnings of $5.79 per share on annual revenues of $41.53 billion.