LifePoint Health, Inc. (NASDAQ:LPNT) reported earnings of $1.22 per share in first-quarter 2018, beating the Zacks Consensus Estimate by 10.9%. Also, the figure increased 14% year over year.
Operational Update
Revenues of $1.6 billion missed the Zacks Consensus Estimate by 0.7% and declined 1.7% year over year.
Same-hospital revenues increased 0.4% year over year to $1.6 billion. This increase was led by a 2.6% rise in same-hospital revenues per equivalent admission, partially offset by a 2.2% decrease in same-hospital equivalent admissions.
LifePoint Health, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA for the quarter ended Mar 31, 2018, was $188.5 million, down 3.6% year over year.
Equivalent admissions declined 4.7% year over year to 171,272 and revenue per equivalent admission was up 3% year over year to $9,358.
Total expenses of $1.61 billion increased 4.6% year over year, led by higher other operating expenses.
At the end of the first quarter, the company had 71 hospitals compared with 72 hospitals in the year-ago quarter.
Margins for the quarter were 11.8%, up 20 basis points sequentially. The margin expansion includes improvements in the class of 2016 hospitals and benefits from additional cost management initiatives.
Financial Update
As of Mar 31, 2018, the company had total assets of $6.26 billion, down 0.5% year over year.
Cash and cash equivalents totaled $140 million, up 25% year over year.
As of Mar 31, 2018, long-term debt increased 0.6% to $2.89 billion from year-end 2016.
Net cash provided by operating activities totaled $100.6 million, up 9.7% year over year, led by decreases in the amount and timing of payments for self-insurance claims and taxes. These improvements were partially offset by increases in the amount and timing of payments for accounts payable and accrued salaries.
The company invested $56.2 million in capital expenditures during the first quarter with its full year expected spend ranges from $475 million to $500 million.
Share Repurchase Update
The company repurchased 625,000 shares of its common stock for $30 million in the first quarter.
Business Update
During the reported quarter, the company entered into an agreement to sell the three hospitals in the State of Louisiana – Mercy Regional Medical Center in Ville Platte, Acadian Medical Center, a campus of Mercy Regional in Eunice, and Minden Medical Center in Minden, LA.
Zacks Rank & Performance of Peers
LifePoint Health presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported their first-quarter earnings so far, the bottom line at Centene Corp. (NYSE:CNC) , Anthem Inc (NYSE:ANTM) and UnitedHealth Group Inc. (NYSE:UNH) beat their respective Zacks Consensus Estimate.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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LifePoint Health, Inc. (LPNT): Free Stock Analysis Report
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