HCA Healthcare's (HCA) reported job cuts are consistent with the enhanced resiliency initiatives that management has been indicating, RBC Capital Markets said in a note Tuesday.
HCA confirmed the layoffs across corporate and support functions, citing ongoing shifts in healthcare policy, rising uninsured patient volumes, and cost pressures, RBC said.
The investment bank adjusted its outlook to reflect greater resiliency benefits in Q4, as well as management's prior commentary pointing to more difficult year-over-year volume comparisons in Q3 and easier comparisons in Q4.
RBC lowered its Q3 EBITDA estimate to $3.635 billion from $3.859 billion and raised its Q4 EBITDA estimate to $4.284 billion from $4.064 billion. Its full-year EBITDA estimate remains unchanged at $15.749 billion.
RBC kept an outperform rating on HCA Healthcare with a price target of $435.
Price: 411.30, Change: -2.28, Percent Change: -0.55
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