Shares of HCA Holdings Inc. (HCA) lost about five percent in after-hours trade on Monday, after the healthcare services provider detailed soft revenue outlook for the first quarter, citing "a slowdown in the growth rate of admissions and weakness in outpatient volumes."
Weak admission rates continue to be a cause of concern for healthcare providers. Last Tuesday, smaller rival HMA provided lackluster earnings and revenue outlook for the first quarter, sending its stock down 11 percent in after-hours trade.
In a statement, HCA Holdings said that during the quarter, same facility admissions rose a modest 0.1 percent, compared to an increase of 3.2 percent a year ago. Same facility equivalent admissions meanwhile slid 0.7 percent, compared to an increase of 4.8 percent a year ago.
The company noted that volume growth trends moderated across all payor classes with managed care/commercial same facility equivalent admissions declining about 4.6 percent in the quarter.
HCA, which operates hospitals, diagnostic and imaging centers, expect first-quarter revenues of about $8.440 billion. Analysts polled by Thomson Reuters currently estimate revenues of $8.71 billion for the quarter.
In the same period last year, HCA reported revenues of $8.405 billion.
Results for the quarter are expected to include pretax losses on sales of facilities of about $0.02 per share and a pretax loss on retirement of debt of about $0.03 per share.
For fiscal year 2013, the Nashville, Tennessee-based company continues to expect adjusted earnings of $3.00 to $3.30 per share on revenues of $33.50 billion to $34.50 billion. Analysts currently estimate earnings of $3.19 per share with revenues of $34.45 billion for the quarter.
HCA closed Monday at $36.72, down 4.18%, on a volume of 4.6 million shares on the NYSE. In after hours, the stock dropped $1.72 or 4.68%.
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