HCA Stock: HCA Healthcare Flies High on Earnings Beat

Healthcare stocks are, unsurprisingly, some of the hottest buy-ins this past year. Thanks to the coronavirus pandemic, healthcare companies have been more than busy. The development of new drugs by biopharmaceutical plays, the administering of vaccines by manufacturing giants and the treatment of patients across hospital facilities has sent health-centric stocks moving across investors’ portfolios. So, it comes as no real surprise to see HCA Healthcare (NYSE:HCA) showing off an impressive earnings report. As such, HCA stock is flying high from the news.

a hand holding an iPhon with an HCA logo on the screen
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HCA is the largest health system in the U.S. by net patient revenue at over $44 billion; that’s nearly 50% greater than CommonSpirit Health, the second-largest system in the country.

HCA, which is based out of Nashville and operates across 2,000 facilities in both the U.S. and U.K., has been keeping busy in Q2. The company reportedly saw a 20% increase in patient admissions between April and June, which corresponds with the rising danger of the delta variant of the novel coronavirus. As such, the healthcare business has had a busy quarter, translating to high earnings. That was confirmed today with the earnings report for HCA stock.

HCA Stock Up as Company Reports Big Revenue in Q2

HCA reported its earnings this morning. Highlights for the quarter include revenue of over $14 billion, a net income of $4.37 per diluted share and $2.25 billion in operating cash flow. Zacks’ estimate for net income is $3.17 per share; obviously, the report blew this estimate out of the water. It also represented gigantic growth from last year, when net income stood at just $1.50 per share.

HCA stock is continuing to rise as a result of the earnings news. Shares are up nearly 15% on the day’s session, and trading volume is at over 3 million, beating the daily average by over 1.3 million shares. All in all, the stock is up nearly 53% on the year.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/07/hca-stock-hca-healthcare-flies-high-on-earnings-beat/.

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