The most recent addition to the International Equities Portfolio reported last week, and we’re slow to write about it, though, all was as expected and perhaps allayed some of the concerns leading into the results, with the share price falling from above $US400 in October to a recent low below $US300.
- Revenue of $US18.28bn was up 5.7% from the same time last year and a slight ~1% beat to consensus
- Earnings (EBITDA) of $3.71bn was up 2.6% YoY and just above expectations of US3.67bn.
They guided to FY25 underling earnings (EBITDA) of $US14.7bn at the midpoint which would imply year on year growth of 5.9%, and more importantly, an improvement in margins. They also authorised an additional $US10bn to buy back stock which is supportive and makes sense given current valuation. While HCA is not a growth stock, it’s not priced as one, and last week’s update increases our confidence that HCA is on the right track for an ongoing recovery.
MM remains long & bullish HCA US, having bought it in January ~$311
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