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Universal Health (UHS) Q3 Earnings Beat, 2018 View Narrows

Universal Health Services Inc . UHS delivered third-quarter 2018 adjusted earnings of $2.23 per share, beating the Zacks Consensus Estimate by 11.5%. Moreover, the bottom line surged 36% year over year.

Universal Health Services, Inc. Price, Consensus and EPS Surprise

Universal Health Services, Inc. Price, Consensus and EPS Surprise | Universal Health Services, Inc. Quote

Net revenues increased 4.2% year over year to $2.6 billion. However, the top line lagged the Zacks Consensus Estimate by 1.2%.

Total operating expenses of $2.3 billion in the third quarter increased 4.7% year over year.

Segment Update

Acute Care Hospitals

Adjusted admissions and adjusted patient days inched up 1.5% and 4.1%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 6.7% in the third quarter.

Behavioral Hospitals

On the basis of same facility, adjusted admissions increased 4.7% while adjusted patient days nudged up 0.6%, both on a year-over-year basis. Net revenues rose 2.5% during the quarter under review on a same facility basis.

Financial Update

As of Sep 30, 2018, the company had cash and cash equivalents of nearly $83.7 million, up 12.5% from year-end 2017.

Total assets were $11.2 billion as of Jun 30, 2018, up 4.8% from year-end 2017.

The long-term debt of the company stood at $ 3.7 billion, up 5.4% from year-end 2017.

For the first nine months of 2018, net cash provided by operating activities totaled $975 million, up 10.9% year over year.

Share Repurchase Update

During the third quarter, the company bought back 0.9 million shares worth $117.9 million.

2018 Guidance Narrows

The company lowered the upper end of its outlook to $9.25-$9.60 per share from $9.25-$9.90, guided earlier.

Zacks Rank

Universal Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Releases From the Medical Sector

In the third quarter, the bottom line of UnitedHealth Group Incorporated UNH and Centene Inc. CNC surpassed the respective Zacks Consensus Estimate.

Anthem Inc. ANTM is set to report third-quarter results on Oct 31, 2018. The company has an Earnings ESP of +1.69% and Zacks rank #2 (Buy).

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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

Universal Health Services, Inc. (UHS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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