Benzinga | Feb 1, 2021 10:19AM EST

Earnings Outlook for HCA Healthcare

On Tuesday, February 02, HCA Healthcare (NYSE:HCA) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

HCA Healthcare earnings will be near $3.58 per share on sales of $13.99 billion, according to analysts. In the same quarter last year, HCA Healthcare reported EPS of $3.09 on revenue of $13.52 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 15.86%. Revenue would be up 3.45% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.32 -0.51 2.66 3.09EPS Actual 1.92 3.23 2.33 3.09Revenue Estimate 12.87 B 9.91 B 13.11 B 13.37 BRevenue Actual 13.31 B 11.07 B 12.86 B 13.52 B

Stock Performance

Shares of HCA Healthcare were trading at $162.9 as of January 29. Over the last 52-week period, shares are up 15.68%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. HCA Healthcare is scheduled to hold the call at 10:00:00 ET and can be accessed here.