HCA Holdings Beats on EPS But GAAP Results Lag

HCA Holdings (NYSE: HCA  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HCA Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins shrank, net margins contracted.

Revenue details
HCA Holdings chalked up revenue of $8.43 billion. The 19 analysts polled by S&P Capital IQ expected sales of $8.89 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $8.34 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.91. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.83 per share. GAAP EPS of $0.68 for Q4 were 84% lower than the prior-year quarter's $4.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.5%, 1,750 basis points better than the prior-year quarter. Operating margin was 12.3%, 290 basis points worse than the prior-year quarter. Net margin was 3.3%, 1,990 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.29 billion. On the bottom line, the average EPS estimate is $0.97.

Next year's average estimate for revenue is $37.21 billion. The average EPS estimate is $3.52.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 62 members out of 68 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give HCA Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HCA Holdings is outperform, with an average price target of $35.93.

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