Key insights
- HCA Healthcare beat Q1 profit estimates due to strong medical care demand, but shares fell 7.6% premarket. Respiratory-related admissions and ER visits were down significantly, offsetting some gains. While revenue per equivalent admission rose, the market reacted negatively, suggesting concerns about future volume growth or the sustainability of current demand.
April 24 Reuters) - Hospital operator HCA Healthcare beat Wall Street estimates for first-quarter profit on Friday, helped by strong demand for its medical care services.
Hospital operators have been benefiting from elevated demand for non-urgent procedures, particularly from older Americans, since the second half of 2023.
However, the company said it did not experience a typical volume increase associated with the flu season, as respiratory-related admissions were down 42%, and respiratory-related emergency room visits were down 32% year-over-year, HCA said.
Shares of HCA fell 7.6% in premarket trading.
Revenue per equivalent admission at same facilities - a measure combining inpatient and outpatient volumes - rose 3.1%.
The company earned adjusted profit of $7.15 per share, compared with analysts' estimates of $7.14 per share, according to data compiled by LSEG.
(Reporting by Siddhi Mahatole and Christy Santhosh in Bengaluru; Editing by Devika Syamnath)