HCA Healthcare’s stock reaches 7-month high after upbeat revenue outlook

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Shares of HCA Healthcare Inc. surged to a seven-month high intraday before paring some gains, after the hospital operator provided an upbeat outlook to third-quarter revenue. The company said late Thursday it expects to report revenue of $13.30 billion, up from 4.8% from a year ago, while the FactSet consensus was for revenue to be flat at $12.69 billion. The expectations for revenue growth comes while the company said it expects same-facility admissions to decline 4% and same-facility emergency room visits to fall 20%. The company expects net income before income taxes to slipped to be down 3.0% to $950 million, with results reflecting a reversal of $822 million in government stimulus recorded in the second quarter related to distribution of funds received under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The company said it repaid early all of its share of the CARES Act distribution and about $4.4 billion in Medicare accelerated payments. HCA is expected to report third-quarter results on Oct. 26. The stock rose as much as 6.2% to an intraday high of $140.00, the highest intraday price seen since March 4, but has pulled back to be up 3.7%. It has slipped 7.5% year to date, 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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