Hospital operator HCA Holdings Inc. (NYSE: HCA) reported a better-than-expected second-quarter profit due to higher patient admissions.
Net income for the quarter rose to $391 million, or $0.85 cents per share, on $8.11 billion in revenue. Earnings per share (EPS) were $0.43 cents per share a year earlier, and revenue was 12% higher year-over-year. Analysts on average were expected earnings of $0.78 per share, according to Thomson Reuters.
Nashville-based HCA reaffirmed its 2012 EPS outlook of $3.57 to $3.77 on revenue of $32 billion to $33 billion. The consensus forecast calls for earnings of $3.69 per share and revenue of $35.56 billion.
Admissions increased in the quarter while volumes fell for competitors. HCA was helped by its presence in urban and suburban areas where the economy is doing better. The company also said revenue was helped by its $1.45 billion buyout last year of a partner’s stake in the HealthOne system of hospitals and surgery clinics in the Denver area.
Shares are trading about 2% higher in premarket trading to $27.15. The 52-week trading range is $17.03 to $31.39. Thomson Reuters had a consensus analyst price target of $33.76 before this news.