Health Management Associates Earnings: Two Straight Quarters of Profit Drops

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Health Management Associates Inc. (NYSE:HMA) reported its results for the second quarter. Health Management Associates and its subsidiaries provide health care services to patients in owned and leased facilities located mainly in non-urban communities in the southeastern and southwestern United States.

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Health Management Associates Inc. Earnings Cheat Sheet

Results: Net income for Health Management Associates Inc. fell to $37 million (14 cents per share) vs. $48.6 million (19 cents per share) a year earlier. This is a decline of 24% from the year-earlier quarter.

Revenue: Rose 20.9% to $1.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Health Management Associates Inc. reported adjusted net income of 21 cents per share. By that measure, the company fell in line with the mean estimate of 21 cents per share. It beat the average revenue estimate of $1.62 billion.

Quoting Management: “We continued to deliver strong revenue and earnings growth in the second quarter by adhering to our proven operating strategy and achieving efficiencies throughout our organization,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “We believe our focus on improving quality, and creating an effective and efficient work environment with a patient centered approach is the right thing to do for our patients, associates and physicians. As a result, hospitals seeking a strategic partner with a similar culture, access to capital and operating expertise are contacting Health Management in increasing numbers, and we are excited about these partnership opportunities.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.6% to $1.49 billion in the first quarter. The figure rose 20.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 10.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 32.1% from the year-earlier quarter.

The company met estimates last quarter after toppling them in the two previous quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 6 cents.

Looking Forward: Analysts have a positive outlook for the company’s performance next quarter. Over the past seven days, the average estimate for the third quarter has gone up to 20 cents a share from 19 cents. The average estimate for the fiscal year has remained at 86 cents per share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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