The famous hospital operator HCA Holdings Inc (NYSE:HCA) has increased the full year guidance after reporting higher than expected results for the quarter ended March 31, 2015. As per the reports, it witnessed higher emergency room visits and admissions in the previous quarter, which helped it post excellent financial figures.
Insights On The Matter:
If taken into consideration the share market trend of last one year, then you can find that HCA Holdings shares elevated by 62% in the previous year. As soon as the company announced that it had decided to increase its full year guidance, its shares rose by 3.1% in morning trading. It is the largest hospital operator in the country in terms of revenues. The primary reason behind HCA’s excellent performance over the last 12 months is nothing but the introduction of Affordable Care Act, which has enhanced the number of paying customers.
The healthcare industry of U.S. is growing steadily due to the introduction of expanded Medicaid programs and consumer-friendly health insurance schemes by the government. It has not only helped new companies entering the industry, but also increased the revenues of companies that are already running their businesses. According to R. Milton Johnson, Chief Executive Officer, HCA Holdings Inc (NYSE:HCA), the company has been going through a wonderful time, and everything seems to fall in line in the best possible way. According to him, favorable volume and payoff trends have benefitted the company in the last 12 months or so.
The analysts had expected HCA Holdings to earn $9.59 billion in the previous quarter, but the company expects to earn $9.68 billion. It expects to earn net earnings of $1.08 billion in the previous quarter, a lot more than $680 million that it had made in the same quarter a year ago. It witnessed 5.1% growth in the same facility admissions, 12% growth in same-facility emergency room visits and 6.8% growth in same-facility equivalent admissions during the March quarter.
