HCA Healthcare stock drops after profit comes up shy of expectations, but revenue beats forecasts

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Shares of HCA Healthcare Inc. sank 3.6% in premarket trading Monday, after the hospital operator reported a third-quarter profit that came up short of expectations, while revenue rose above forecasts despite a drop in same-facility admissions. Net income rose to $668 million, or $1.95 a share, from $612 million, or $1.76 a share, in the year-ago period. the company said the results include a reversal of $822 million, or $1.72 a share, in government stimulus income recorded in the sequential second quarter. The FactSet consensus for earnings per share was $2.32, and the consensus for net EPS was $2.61. Revenue increased 4.9% to $13.31 billion, above the FactSet consensus of $12.90 billion. Same-facility admissions declined 3.8% and equivalent admissions fell 9.0%, as same-facility emergency room visits dropped 20.3% and same-facility inpatient surgeries declined 6.8%. Meanwhile, same-facility revenue per equivalent admission increased 14.8%, due to increases in acuity of patients treated and favorable payer mix. The stock has lost 7.6% year to date through Friday, while the SPDR Health Care Select Sector ETF has gained 5.9% and the S&P 500 has advanced 7.3%.
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