HCA sees strong momentum in 2016 on higher Q4, year-end earnings

HCA Holdings posted higher net income and revenue in its fourth quarter, though cash flow slipped slightly.

The hospital giant posted net income of $582 million, or $1.40 per diluted share, compared with $527 million, or $1.19 per diluted share, in the year-earlier quarter ended Dec. 31. Adjusted EBITDA totaled $2.1 billion, an increase of 8.9%.

Revenue in the quarter was $10.2 billion, an increase of 6.4% over the $9.6 billion in the fourth quarter of 2014.

Cash flows from operations dipped to $1.56 billion in the quarter from $1.62 billion the year earlier.

For 2015, the company posted net income of $2.1 billion, or $4.99 per diluted share, compared with $1.9 billion, or $4.16 per diluted share, in 2014.

Revenue last year totaled $39.7 billion vs. $36.9 billion in 2014.

In issuing investor guidance for this year, HCA said revenue is expected to range from $41.5 billion to $42.5 billion and adjusted earnings per share on a diluted basis would range from $6 per share to $6.45.

The company, the nation's largest hospital chain, estimated capital expenditures this year of $2.7 billion.


Dave Barkholz

Dave Barkholz is Modern Healthcare’s Southern Bureau Chief stationed in Nashville. He covers hospitals, doctors, suppliers and governance across the Southeast. A winner of numerous national journalism awards, Barkholz started his career at Modern Healthcare in 1984 covering the investor-owned hospital companies. He spent the past 10 years in Detroit at Automotive News, a sister Crain publication.

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