Cigna earnings beat by $0.04, revenue topped estimates
On Monday, KeyBanc Capital Markets reaffirmed their positive stance on HCA Healthcare Inc (NYSE:HCA), maintaining an Overweight rating and a price target of $370.00. According to InvestingPro data, the stock currently trades at $327.92 and appears undervalued based on its Fair Value analysis. The endorsement follows HCA Healthcare’s first-quarter results, which were characterized by robust same-store sales growth and effective expense management, leading to a 6% EBITDA beat. The company’s strong performance is reflected in its impressive $14.22 billion EBITDA and $71.58 billion revenue over the last twelve months.
Despite these strong quarterly outcomes, HCA Healthcare’s shares dipped 4% on Friday, contrasting with the S&P 500’s 0.7% gain. Analysts at KeyBanc suggest that the stock’s decline may have been triggered by uncertainties surrounding healthcare policies and a potential overreaction to the company’s decision not to revise its financial guidance upward at this time.
KeyBanc analysts argue that concerns regarding the unchanged guidance might be premature, as the year is still young and HCA Healthcare’s management may be exercising caution. They emphasize that the Overweight rating is supported by the company’s ongoing volume growth and the robust performance of its markets.
The analysts also recognize that policy uncertainty is expected to remain a factor into the early second half of the year. However, they believe that the fundamental strengths of HCA Healthcare, such as its market presence and operational efficiency, justify their positive outlook on the stock.
In other recent news, HCA Healthcare reported robust financial results for the first quarter of 2025, with earnings per share (EPS) reaching $6.45, surpassing analysts’ expectations of $5.78. Revenue also exceeded forecasts, totaling $18.32 billion compared to the anticipated $18.26 billion. Despite these strong earnings, the company’s stock experienced a decline in pre-market trading, which analysts attribute to broader market concerns rather than company-specific issues. Additionally, RBC Capital Markets adjusted its price target for HCA Healthcare, lowering it to $376 from $384, but maintained an Outperform rating, citing ongoing policy uncertainties in the healthcare sector. HCA Healthcare’s management has been recognized for effectively navigating these challenges and maintaining consistent guidance. The company also announced a boost in the first quarter from a state reconciliation payment and reaffirmed its full-year 2025 guidance, anticipating steady admissions growth. HCA Healthcare continues to focus on digital transformation and AI investments, aiming to enhance operational efficiency and clinical technology development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.