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Zacks.com Announces that David Nichols Highlights the Following Stocks: Health Management Associates, Province Healthcare, and Quidel Corporation
Monday, December 22, 2003 06:00 AM ET Printer-friendly version
CHICAGO--(BUSINESS WIRE)--Dec. 22, 2003--The new Medicare law will have a positive impact on certain healthcare stocks, says David Nichols, who puts a focus on three companies that could give your portfolio a shot-in-the-arm. Learn about Health Management Associates, Inc. (NYSE: HMA, news), Province Healthcare Company (NYSE: PRV, news), and Quidel Corporation (NASDAQ: QDEL, news). Click here for the full story exclusively on Zacks.com: at.zacks.com/?id=84
Here are the highlights from the Featured Expert column:
A watershed event like the new law overhauling Medicare is bound to affect more than just one sector. Most of the attention is going to the $400 billion prescription drug benefit that stretches out over the next 10 years, which should give some generic drug companies a shot in the arm, so to speak. Less well known is that the bill expands funding to hospitals by $25 billion over that period, offering important revenue-enhancing incremental reimbursements and making some hospital companies a buy. Also benefiting will be some medical diagnostics companies.
Several hospital chains serve primarily non-urban populations; two are Health Management Associates, Inc. (NYSE: HMA, news) and Province Healthcare. Health Management's hospitals provide general acute care health services and numerous specialty services in non-urban communities mainly in the southeast and southwest. The company operates or leases over 50 hospitals with more than 7,500 beds, and two psychiatric- only hospitals. By next month, it will have acquired 10 hospitals in 2003 alone. Its fourth-quarter earnings per share are up four cents from a year ago, even in a year marked by heavy acquisition activity. Net income was up 16% to about $70 million on net patient-service revenue that grew 11% to $657 million. "Same-store" revenues, meaning hospitals owned or operated by the company for a year or more, were up an impressive 7.8%; this represents HMA's 60th consecutive quarter of same hospital revenue growth.
Also in a position to benefit from increased rural spending is Province Healthcare Company (NYSE: PRV, news). Province takes a slightly different approach from Health Management. Like HMA, it owns and operates hospitals in non-urban markets -- some 20 general acute care hospitals in 13 states with a total of 2,284 licensed beds. The main difference is that Province is also in the hospital management business, managing for a fee 37 hospitals it doesn't own, with over 4,000 licensed beds. Earnings per share in its latest quarter were up a penny, operating revenues increased 6% to $195 million, net income was up 4% to $9.8 million, admissions and outpatient revenue were up.
Despite the high P/E and pint-sized volume, Quidel Corporation (NASDAQ: QDEL, news) could reward the patient investor. Quidel develops and manufactures rapid diagnostics -- point-of-care tests used in doctors' offices, hospitals and clinical labs to quickly and inexpensively diagnose pregnancy, streptococcus-A, two types of flu, bacteria-related ulcers, bone conditions, and certain urinary and auto-immune infections. Given world health conditions and industrialized-nation demographics, all are growing markets. Revenue for the third quarter was up 28% to $18.6 million. Restructuring expenses and LTF development led to a net loss of $500,000 or 2 cents a share, although well down from its net loss in last year's third quarter; gross margins and cash were both up. Tight cost controls, effective restructuring, growing revenues and cutting-edge products make a small stake in Quidel worth taking.
Learn a lot more about these companies, and don't forget to read David Nichols' market forecast and get even more recommendations by clicking: at.zacks.com/?id=85
About Zacks Featured Experts
Zacks.com Announces that David Nichols Highlights the Following Stocks: Health Management Associates, Province Healthcare, and Quidel Corporation
Monday, December 22, 2003 06:00 AM ET Printer-friendly version
CHICAGO--(BUSINESS WIRE)--Dec. 22, 2003--The new Medicare law will have a positive impact on certain healthcare stocks, says David Nichols, who puts a focus on three companies that could give your portfolio a shot-in-the-arm. Learn about Health Management Associates, Inc. (NYSE: HMA, news), Province Healthcare Company (NYSE: PRV, news), and Quidel Corporation (NASDAQ: QDEL, news). Click here for the full story exclusively on Zacks.com: at.zacks.com/?id=84
Here are the highlights from the Featured Expert column:
A watershed event like the new law overhauling Medicare is bound to affect more than just one sector. Most of the attention is going to the $400 billion prescription drug benefit that stretches out over the next 10 years, which should give some generic drug companies a shot in the arm, so to speak. Less well known is that the bill expands funding to hospitals by $25 billion over that period, offering important revenue-enhancing incremental reimbursements and making some hospital companies a buy. Also benefiting will be some medical diagnostics companies.
Several hospital chains serve primarily non-urban populations; two are Health Management Associates, Inc. (NYSE: HMA, news) and Province Healthcare. Health Management's hospitals provide general acute care health services and numerous specialty services in non-urban communities mainly in the southeast and southwest. The company operates or leases over 50 hospitals with more than 7,500 beds, and two psychiatric- only hospitals. By next month, it will have acquired 10 hospitals in 2003 alone. Its fourth-quarter earnings per share are up four cents from a year ago, even in a year marked by heavy acquisition activity. Net income was up 16% to about $70 million on net patient-service revenue that grew 11% to $657 million. "Same-store" revenues, meaning hospitals owned or operated by the company for a year or more, were up an impressive 7.8%; this represents HMA's 60th consecutive quarter of same hospital revenue growth.
Also in a position to benefit from increased rural spending is Province Healthcare Company (NYSE: PRV, news). Province takes a slightly different approach from Health Management. Like HMA, it owns and operates hospitals in non-urban markets -- some 20 general acute care hospitals in 13 states with a total of 2,284 licensed beds. The main difference is that Province is also in the hospital management business, managing for a fee 37 hospitals it doesn't own, with over 4,000 licensed beds. Earnings per share in its latest quarter were up a penny, operating revenues increased 6% to $195 million, net income was up 4% to $9.8 million, admissions and outpatient revenue were up.
Despite the high P/E and pint-sized volume, Quidel Corporation (NASDAQ: QDEL, news) could reward the patient investor. Quidel develops and manufactures rapid diagnostics -- point-of-care tests used in doctors' offices, hospitals and clinical labs to quickly and inexpensively diagnose pregnancy, streptococcus-A, two types of flu, bacteria-related ulcers, bone conditions, and certain urinary and auto-immune infections. Given world health conditions and industrialized-nation demographics, all are growing markets. Revenue for the third quarter was up 28% to $18.6 million. Restructuring expenses and LTF development led to a net loss of $500,000 or 2 cents a share, although well down from its net loss in last year's third quarter; gross margins and cash were both up. Tight cost controls, effective restructuring, growing revenues and cutting-edge products make a small stake in Quidel worth taking.
Learn a lot more about these companies, and don't forget to read David Nichols' market forecast and get even more recommendations by clicking: at.zacks.com/?id=85
About Zacks Featured Experts
