(Reuters) -HCA Healthcare reported lower-than-expected quarterly profit on Friday and forecast up to a $300-million hit in the fourth quarter due to delays in medical procedures from recent hurricanes, causing its shares to drop 9%.
Hospitals in the direct path of the hurricanes postponed procedures, further strained by IV fluid shortages due to flooding at a major U.S. facility.
HCA (NYSE:HCA), the largest for-profit U.S. hospital operator, said it experienced a loss of revenue in the third quarter ended Sept. 30 from the impact of Hurricane Helene on some of its facilities in Florida, Georgia and North Carolina.
It expects expenses and revenue loss between $200 million and $300 million in the fourth quarter due to a hit from Hurricanes Helene and Milton, it said.
Shares of other hospital operators, Tenet Healthcare (NYSE:THC) and Universal Health (NYSE:UHS) Services, also fell, by 6% and 8%, respectively, in early trading.
However, the impact from the hurricanes "does not change the long-term fundamental growth outlook of HCA", according to Baird analyst Michael Ha.
The company closed five hospitals in Florida earlier this month in preparation for Hurricane Milton and transferred about 400 patients throughout the state to mandatory evacuation zones.
HCA expects a "manageable" hit from Hurricane Helene on its North Carolina facilities even next year. It forecast 2025 profit to be near or slightly above the upper end of its long-term growth range.
It expects its 2024 profit and revenue forecasts to be in the "lower half of the ranges provided", due to lingering effects from the hurricanes.
HCA's quarterly revenue of $17.49 billion missed an estimate of $17.54 billion, according to data compiled by LSEG.
The company reported third-quarter profit of $4.88 per share. Analysts on average had expected a profit of $4.97 per share.