HCA Healthcare, Inc. (NYSE:HCA) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
HCA Healthcare, Inc. (NYSE:HCA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$20b arriving 2.5% ahead of forecasts. Statutory earnings per share (EPS) were US$7.62, 2.2% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following last week's earnings report, HCA Healthcare's 22 analysts are forecasting 2026 revenues to be US$78.5b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 3.5% to US$29.77 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$78.5b and earnings per share (EPS) of US$29.95 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for HCA Healthcare
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$453. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic HCA Healthcare analyst has a price target of US$579 per share, while the most pessimistic values it at US$369. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HCA Healthcare's past performance and to peers in the same industry. It's pretty clear that there is an expectation that HCA Healthcare's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 6.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that HCA Healthcare is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$453, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for HCA Healthcare going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for HCA Healthcare (1 is significant!) that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.