Nashville, Tenn.-based HCA Healthcare's stock price has fallen 25% over the past two months, from an all-time high of $415.54 on Oct. 18 to $311.99 on Dec. 12.
The stock price slide began with a nearly 10% drop after third-quarter results fell short of expectations. This was despite HCA reporting an operating income of $1.9 billion (10.9% margin) on $17.5 billion in revenue, which increased 8% year over year.
The 187-hospital system missed its third-quarter forecasts by $50 million, largely because of disruptions at facilities in Florida, Georgia and North Carolina due to hurricanes Helene and Milton.
HCA anticipates additional expenses and loss of revenue due to Helene's impact on its North Carolina facilities, as well as from Hurricane Milton, which affected certain facilities in Florida during October. The financial effect of the hurricanes is estimated to be between $200 million and $300 million.
"We anticipate incurring significant expenses and lost revenue related to these issues throughout the remainder of the year," HCA CEO Sam Hazen said during the company's Oct. 25 earnings call.
For example, HCA's Florida Largo Hospital, a 455-bed facility, was significantly damaged during Hurricane Milton. Repairs delayed its full reopening until Dec. 1.
"Lost revenue" and "significant repair expenses" at the hospital put a dent in HCA Florida's fourth-quarter expectations, according to Mr. Hazen.
Despite the challenges, HCA reaffirmed its 2024 net income estimate of $5.7 billion to $6 billion but cautioned results would likely fall at the lower end of the range. This guidance, raised in July, reflects optimism despite recent setbacks.