Health Management Associates Inc. Earnings Cheat Sheet: Profit Rises Again

Health Management Associates Inc. (NASDAQ:HMA) reported its results for the second quarter. Health Management Associates, Inc and its subsidiariesprovide 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for Health Management Associates Inc. rose to $48.6 million (19 cents per share) vs. $39.7 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 22.6% from the year earlier quarter.

Revenue: Rose 11.8% to $1.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HMA fell in line with the mean analyst estimate of 19 cents per share. Analysts were expecting revenue of $1.41 billion.

Quoting Management: “There are a number of exciting things taking place at Health Management, and we remain focused on the fundamentals – effective cost controls, emergency room operations, physician recruitment and market service development,” said Chief Executive Officer Gary D. Newsome. “We continue to believe that over the foreseeable future the acquisition and partnership pipeline represents a tremendous growth opportunity for us. We continue to review partnership opportunities with community hospitals in non-urban and midsize markets, and we will remain disciplined in our acquisition approach.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.6% to $1.43 billion in the first quarter. The figure rose 9.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 22 cents versus a mean estimate of net income of 21 cents per share.

Net income has increased 16.8% year over year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 38.7% from the year earlier quarter.

Competitors to Watch: Community Health Systems (NYSE:CYH), Universal Health Services, Inc. (NYSE:UHS), Tenet Healthcare Corp. (NYSE:THC), HCA Holdings Inc (NYSE:HCA), MedCath Corporation (NASDAQ:MDTH), SunLink Health Systems, Inc. (AMEX:SSY), LifePoint Hospitals, Inc. (NASDAQ:LPNT), Dynacq Healthcare, Inc. (NASDAQ:DYII), Select Medical Hldgs. Corp. (NYSE:SEM), and HEALTHSOUTH Corp. (NYSE:HLS).

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(Source: Xignite Financials)