(Reuters) -HCA Healthcare beat Wall Street estimates for first-quarter profit on Friday, as the hospital operator benefited from sustained demand for elective procedures in the United States.
Health insurance bellwether UnitedHealth Group last week flagged a surge in demand for medical care, particularly from older people, and lowered its annual outlook, a sign that the trend would continue this year.
HCA’s first-quarter profit jumped nearly 9% to $6.45 per share, above analysts’ average estimate of $5.76 per share, according to data compiled by LSEG.
“The company continues to perform well in the face of an unpredictable policy environment,” said Oppenheimer analyst Michael Wiederhorn.
HCA reiterated its annual profit forecast of $24.05 to $25.85 per share, and said it includes the current and future impacts of policy developments, including the Trump administration’s tariffs on imports.
“The potential for higher medical device, equipment, and supply costs due to tariffs could cut into profits at caregivers like HCA,” said Morningstar analyst Julie Utterback.
HCA said last month it does not expect any material impact from tariffs this year as it has secured long-term contracts and domestic sources to provide supplies to mitigate any near-term hit.
“Many of our team suppliers have been working on derisking and diversifying their supply chains over the last many years, especially away from China,” CFO Michael Marks said in January.
The outlook also assumes the impact from hurricanes that led to delays in procedures at some of its facilities in Florida, Georgia and North Carolina last year, HCA said.
The company’s first-quarter revenue came in at $18.32 billion, compared with estimates of $18.26 billion.
HCA said same-facility admissions, a metric which helps measure how each facility is performing, rose 2.6%, while same-facility emergency room visits increased 4%.
(Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Shinjini Ganguli)
