Health Management Associates, Inc. Third Quarter Earnings Sneak Peek

Health Management Associates, Inc. (NYSE:HMA) will unveil its latest earnings on Monday, October 24, 2011. 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.

Health Management Associates, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 17 cents per share, a rise of 21.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 20% versus last year to 78 cents.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 20 cents per share against an estimate of profit of. The company also topped expectations in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $1.4 billion in revenue this quarter, a rise of 10.2% from the year ago quarter. Analysts are forecasting total revenue of $5.81 billion for the year, a rise of 13.5% from last year’s revenue of $5.12 billion.

Analyst Ratings: 12 out of 20 analysts surveyed (60%) have a buy rating on Health Management Associates.. This is below the mean analyst rating of 10 competitors, which average 60.8% buy ratings.

A Look Back: In the second quarter, profit rose 22.6% to $48.6 million (19 cents a share) from $39.7 million (16 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11.8% to $1.4 billion from $1.25 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 11.6% in the first quarter from the year earlier, climbed 9.4% in the fourth quarter of the last fiscal year from the year-ago quarter and 13.3% in the third quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 15.5%. The quarter with the biggest boost was the third quarter of the last fiscal year, which saw a 38.7% surge.

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).

Stock Price Performance: During August 22, 2011 to October 18, 2011, the stock price had risen $1.41 (20.4%) from $6.92 to $8.33. The stock price saw one of its best stretches over the last year between April 21, 2011 and May 2, 2011 when shares rose for seven-straight days, rising 10.8% (+$1.11) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight-straight days, falling 29% (-$2.78) over that span. Shares are down $1.21 (-12.7%) year to date.

(Source: Xignite Financials)

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