HCA Shares Jump on Profitability Outlook for Upcoming Year

HCA Healthcare Inc. shares gained after the hospital operator’s better-than-expected guidance eased investor concerns about expiring Affordable Care Act subsidies.

The Nashville-based company sees adjusted earnings before interest, taxes, depreciation and amortization of about $16 billion this year at the midpoint of its guidance. Analysts surveyed by Bloomberg had projected $15.8 billion on average.

“We are pleasantly surprised by the outlook,” wrote RBC Capital Markets analyst Ben Hendrix in a note. Some investors had been concerned that expiring tax credits for ACA health insurance would drag on the company’s guidance, he said.

HCA shares rose as much as 8.4% ...