The Nashville-based healthcare holding company reported its 2015 third quarter earnings before the market open yesterday.
HCA Holdings reported earnings of $1.05 per share, lower than analysts' estimates of $1.20 per share. The company reported revenue of $9.86 billion, higher than analysts' estimates of $9.85 billion.
"HCA's disappointing 3Q:15 earnings were due mostly to greater-than-expected demand that required more expensive contract labor," Cantor Fitzgerald said.
The company's higher labor costs should be temporary due to HCA's action plan, which involves better recruiting, training and support to reduce employee turnover, the firm noted.
Shares of HCA Holdings were down by 0.04% to $68.77 in late afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates HCA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate HCA HOLDINGS INC (HCA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: HCA