The Nashville-based company reported third-quarter revenue of $13.31 billion, a 4.9% year over year increase, on net income of $688 million, or $1.95 per share. Analysts were expecting revenue of $12.9 billion on earnings of $2.32.
Two weeks ago, the company's stock jumped after it pre-reported revenue expectations for the third quarter, however, that stock run-up is being challenged Monday with the company's earnings miss.
"As the initial immediacy of the emergency has passed, and with more information, and more experience managing our operations during the pandemic, we believe returning these taxpayer dollars is appropriate and the socially responsible thing to do," Sam Hazen, CEO, said in a statement when the company pre-reported.
The company also announced that it was able to return, or repay early, all of its share of the Provider Relief Fund distributions of about $1.6 billion and roughly $4.4 billion in Medicare accelerated payments.
HCA reported income before income taxes of $950 million, down from $979 million a year ago, reflecting a reversal of $822 million in government stimulus income recorded in the second quarter of 2020 related to general distribution funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Hazen added that "we greatly appreciate the CARES Act funding and the policymakers who fought hard to ensure hospitals would have the essential resources during the pandemic."
After the company started the day trading down more than 3%, HCA recovered to climb 0.14% to $136.78 Monday morning.