Despite shaky volumes seen throughout the hospital sector, Nashville, Tenn.-based Hospital Corporation of America is predicting a second-straight strong quarter.
HCA issued preliminary financial and operating figures for its third quarter, which ended Sept. 30. HCA expects income before taxes increased 3.5 percent year-over-year to $701 million, and revenue was roughly $8.5 billion — or 5 percent higher than the same period last year. Third-quarter adjusted EBITDA is expected to rise to $1.6 billion.
The optimistic preview is due to higher-than-expected admissions. HCA's same-facility admissions in the third quarter rose 0.7 percent, while equivalent admissions increased 1.1 percent.
Last quarter, HCA similarly posted gains in profit and admissions, a trend not shared by other major for-profit hospital operators like Franklin, Tenn.-based Community Health Systems that mostly operate small or rural hospitals.
Investors reacted positively to HCA's news, as shares reached more than $49 in after-hours trading. HCA's shares are up more than 4 percent so far this week, and they are up more than 51 percent on the year. HCA expects to release full third-quarter results Nov. 5.
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