HCA Holdings Q4 Results Top Estimates, Guides 2014 EPS Below View

(RTTNews) - Hospital operator HCA Holdings, Inc. (HCA) reported Monday a profit for the fourth quarter that increased from last year, which was weighed down by hefty legal costs. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the full-year 2014, below Street view.

"We are extremely pleased with the results for the quarter and the year," President and CEO Milton Johnson said in a statement.

The Nashville, Tennessee-based company reported net income of $424 million or $0.92 per share for the fourth quarter, higher than $314 million or $0.68 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $422 million or $0.92 per share, compared to $418 million or $0.91 per share in the year-ago quarter.

On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically excludes special items.

Revenues for the quarter increased 4.8 percent to $8.84 billion from $8.43 billion in the same quarter last year. Cash revenues, which is revenues less the provision for doubtful accounts or bad debts, totaled $9.96 billion, compared to $9.54 billion a year ago. Twenty Wall Street analysts had a consensus revenue estimate of $8.82 billion.

Same facility equivalent admissions decreased 1.0 percent in the quarter, and same facility admissions declined 1.8 percent, while same facility revenue per equivalent admission increased 4.8 percent, Same facility emergency room visits decreased 2.4 percent.

The company noted that decline in admissions in the quarter was primarily due to a reduction in pulmonary and short-stay admissions from the prior year.

Same facility total surgical volume increased 1.4 percent, same facility inpatient surgeries edged up 0.9 percent and same facility outpatient surgeries increased 1.6 percent

For fiscal 2013, the company reported net income of $1.56 billion or $3.37 per share, lower than $1.61 billion or $3.49 per share in the prior year. Excluding items, adjusted net income for the year was $1.57 billion or $3.41 per share, compared to $1.71 billion or $3.71 per share in the year ago. Analysts expected the company to report earnings of $3.34 per share for fiscal 2013.

Revenues for the full year grew to $34.18 billion from $33.01 billion in the previous yea, and cash revenues totaled $38/04 billion, compared to $36.78 billion last year. Street was looking for full-year 2013 revenues of $34.16 billion.

Looking ahead to the fiscal 2014, the company expects adjusted earnings in a range of $3.45 to $3.75 per share, on projected revenues between $35.50 billion and $36.50 billion. Street is currently looking for full-year 2014 earnings of $3.78 per share, on annual revenues of $36.14 billion.

"As we look to 2014, we will continue our focus on improving patient quality and experience, growth and efficiency. We believe we are well positioned for continued success in our markets," Johnson added.

HCA closed Monday's regular trading session at $48.46, down $1.99 on a volume of 3.48 million shares.