HCA Shares Up After 4Q Profits Surge

[Stocks-to-Watch]

Nothing pleases investors quite like a surging profits and dividends. *Just look at *HCA (HCA).

Shares of the nation’s largest hospital chain rose more than 4% or $1.09 a share to $27.55 a share after the company reported that fourth-quarter earnings that spiked due to an acquisition and said it will pay inventors q special dividend of $2 a share.

Operating income totaled 94 cents a share compared to consensus analysts’ estimates of 76 cents a share, and revenue rose 8.5% to $7.77 billion. The quarter was boosted by gains from asset sales and the purchase of the part of HealthONE it didn’t already own.

This year, meanwhile, HCA expects to earn between $3.35 a share and $3.55 a share on revenue of $32 billion to $33 billion.

Insurers are expecting demand for medical services to finally start rebounding this year. The U.S. unemployment rate fell in January to a *three-year of 8.3%, which is good news for hospitals and other health-care service providers previously hobbled by Americans who postponed medical treatment amid worries about the economy and employment.



Original Article Source by Barrons.com