Universal Health Services, Inc.

Company Description

Universal Health Services owns and operates acute care hospitals, behavioral health centers, ambulatory surgery centers, radiation oncology centers and women's centers.

Services provided by the company's hospitals include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services and behavioral health services.

Great Quarter

Universal just reported its first-quarter results on Apr 27 that included net income of $68 million, up from $62 million last year. Revenue saw a modest 3% gain, but coupled with an increased operating margin; it was enough to drive earnings higher.

Earnings per share were $1.37, up from $1.17 on year ago. EPS also topped Wall Street expectations estimates which averaged $1.13.

Estimate Revisions

Most analysts have not had time to submit revised estimates since the announcement however full-year earnings were already climbing prior to the report.

Estimates for 2009 are now averaging $3.97, up from $3.87 over the past 3 months. The consensus estimate for 2010 is $4.26, up from $4.13 during the same time frame.

The Chart

Share of UHS were able to continue recent momentum as investors loved the previously mentions quarterly report. The stock blew past a 6-month level of resistance in the low $40 range.