Health Management Associates Inc. Earnings: Higher-Than-Expected Net Income

Health Management Associates Inc. (NYSE:HMA) reported net income above Wall Street’s expectations for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the hospital rose to $30.8 million (13 cents per share) vs. $28.2 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 9.5% from the year earlier quarter.

Revenue: Rose 17.6% to $1.58 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Health Management Associates Inc. reported adjusted net income of 26 cents per share. By that measure, the company beat the mean estimate of 20 cents per share. Analysts were expecting revenue of $1.58 billion.

Quoting Management: “We are pleased to report another year of record revenues and strong earnings as we continue to successfully execute our operating and partnership strategies,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “By continuing to focus our efforts on the fundamentals – investment in innovative services and strategic partnerships, recruitment of physicians and leadership talent, adherence to effective cost control measures and development of our very active partnership pipeline, we are looking forward to 2012 as we seek to enable America’s best local health care.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 23.9% and in the second quarter, the figure rose 22.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the third quarter, by one cent in the second quarter, and by one cent in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 22 cents per share, down from 25 cents ninety days ago. For the fiscal year, the average estimate has moved up from 79 cents a share to 80 cents over the last thirty days.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com