(Reuters) -HCA Healthcare raised its annual profit forecast on Tuesday, after beating Wall Street estimates for second-quarter earnings, sending shares of the hospital operator up more than 7% before the bell.
Over the past year, demand for medical care has been robust as Americans, especially older adults, catch up on non-urgent procedures they had deferred due to the pandemic.
Some analysts expect hospitals to benefit from an overall ageing population in the United States, while others believe a shift to ambulatory care centers, which do not require patients to stay overnight, has also aided demand.
HCA (NYSE:) now expects 2024 profit in the range of $21.60 to $22.80 per share, compared with its previous estimate of $19.70 to $21.20. Analysts were expecting an annual profit of $20.98, according to LSEG data.
The forecast raise from the largest for-profit hospital operator in the United States, met the elevated expectations heading into the quarter, said Mizuho analyst Ann Hynes.
Shares of peers Universal Health (NYSE:) Services rose 2.65%, while Community Health (NYSE:) systems climbed nearly 6% in premarket trading.
Nashville, Tennessee-based HCA’s second-quarter profit beat was aided by higher patient admissions and easing costs related to staffing constraints.
The company reported a 5.8% increase in same-facility admissions in the quarter, while same-facility emergency room visits increased 5.5%.
Its profit of $5.50 per share came above LSEG estimate of a profit of $4.88.