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Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2020 adjusted earnings of $2.88 per share, which outpaced the Zacks Consensus Estimate by 41.8%. The bottom line also improved 44.7% year over year.
Lower costs and increased revenues contributed to its overall performance.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Net revenues increased 3.2% year over year to $2.9 billion. This upside can primarily be attributed to the company’s acute care and behavioural health care facilities. Moreover, net revenues outpaced the Zacks Consensus Estimate by 6.1%.
Total operating expenses of $2.5 billion at the end of the third quarter declined 2.7% year over year, primarily owing to lower other operating expenses as well as salaries, wages and benefits.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 17.3% and 1.6%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) inched up 5.5% year over year including the favourable impact of the CARES Act and other grant income revenues.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 5.6% and 3.6%, respectively, year over year. Net revenues were up 1.2% during the quarter under review on same-facility basis including the positive impact of the CARES Act and other grant income revenue reversal.
Financial Update
As of Sep 30, 2020, the company had cash and cash equivalents of $1.1 billion compared with $612 million at 2019 end.
Total assets were $13 billion as of Sep 30, 2020, up 11.5% from the figure as of 2019 end.
The company’s long-term debt was $3.5 billion, down 9.8% from the figure as of Dec 31, 2019.
In the first nine months of 2020, net cash provided by operating activities totaled $2.2 billion, which soared 100.7% year over year. This can primarily be attributed to a favourable change from the Medicare accelerated payments and the deferred CARES Act and other grants, a positive change from the payment deferral of the employer's share of Social Security taxes, a favorable change in accounts receivable and a favorable change in accrued and deferred income taxes, etc.
Of the medical sector players that reported third-quarter results so far, earnings of UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
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Universal Health's (UHS) Q3 Earnings Surpass, Improve Y/Y
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2020 adjusted earnings of $2.88 per share, which outpaced the Zacks Consensus Estimate by 41.8%. The bottom line also improved 44.7% year over year.
Lower costs and increased revenues contributed to its overall performance.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Quarterly Operational Update
Net revenues increased 3.2% year over year to $2.9 billion. This upside can primarily be attributed to the company’s acute care and behavioural health care facilities. Moreover, net revenues outpaced the Zacks Consensus Estimate by 6.1%.
Total operating expenses of $2.5 billion at the end of the third quarter declined 2.7% year over year, primarily owing to lower other operating expenses as well as salaries, wages and benefits.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 17.3% and 1.6%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) inched up 5.5% year over year including the favourable impact of the CARES Act and other grant income revenues.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 5.6% and 3.6%, respectively, year over year. Net revenues were up 1.2% during the quarter under review on same-facility basis including the positive impact of the CARES Act and other grant income revenue reversal.
Financial Update
As of Sep 30, 2020, the company had cash and cash equivalents of $1.1 billion compared with $612 million at 2019 end.
Total assets were $13 billion as of Sep 30, 2020, up 11.5% from the figure as of 2019 end.
The company’s long-term debt was $3.5 billion, down 9.8% from the figure as of Dec 31, 2019.
In the first nine months of 2020, net cash provided by operating activities totaled $2.2 billion, which soared 100.7% year over year. This can primarily be attributed to a favourable change from the Medicare accelerated payments and the deferred CARES Act and other grants, a positive change from the payment deferral of the employer's share of Social Security taxes, a favorable change in accounts receivable and a favorable change in accrued and deferred income taxes, etc.
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.
Other Medical Sector Releases
Of the medical sector players that reported third-quarter results so far, earnings of UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>