By Sriparna Roy and Sneha S K
(Reuters) -HCA Healthcare on Friday beat Wall Street estimates for quarterly profit and revenue, helped by higher patient admissions due to demand for healthcare services.
The largest for-profit hospital operator in the United States, however, left its annual forecast unchanged, sending the company’s shares down 4.5% before the bell.
At least two analysts said the maintained outlook may disappoint investors after HCA (NYSE:) reported better-than-expected results.
The forecast “likely reflects a conservative posture” by HCA, said Stephens analyst Scott Fidel.
Demand for medical care has been healthy even after the COVID-induced backlog has cleared, analysts say. Some have attributed it to an overall ageing population in the United States, while others also said a shift in the preference for more efficient setting such as ambulatory care centers that do not require patients to stay overnight has also aided demand.
The company’s results were driven primarily by broad-based volume growth, said Sam Hazen, chief executive officer of HCA.
In the first quarter, the Nashville, Tennessee-based hospital operator saw a 6.2% increase in same-facility admissions, while emergency room visits increased by 7.2%.
Revenue from same-facilities per equivalent admission increased 3.5%.
HCA posted quarterly revenue of $17.34 billion, ahead of estimates of $16.78 billion.
The company reaffirmed its annual forecast.
HCA reported an adjusted profit of $5.36 per share for the quarter. Analysts on average had expected a profit of $5.01 per share, according to LSEG data.
