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Universal Health (UHS) Q2 Earnings Beat Estimates, Up Y/Y

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Universal Health Services Inc. (UHS - Free Report) reported second-quarter 2018 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate by 3.3%. Moreover, the bottom line improved 27.3% year over year.

Net revenues increased 2.6% year over year to $2.68 billion. However, the top line lagged the Zacks Consensus Estimate by 1.3%.

Total operating expenses of $2.4 billion at the end of the second quarter rose 3.3% year over year, mainly due to escalating interest expenses.

Segment Update

Acute Care Hospitals:

Adjusted admissions and adjusted patient days increased 1.9% and 4.7%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 3.3% in the second quarter, majorly backed by rise in admissions and patient days.

Behavioral Hospitals:

On a same facility basis, adjusted admissions increased 1.2% while adjusted patient days declined 0.3%, both on a year-over-year basis. Net revenues grew 2.8% during the quarter under review on a same facility basis due to rise in segment admissions.

Financial Update

As of Jun 30, 2018, the company had cash and cash equivalents of nearly $76 million, up 3.3% from the level at year-end 2017.

Total assets were $11 billion as of Jun 30, 2018, up 2.9% from the tally as of Dec 31, 2017.

The company’s long-term debt came in at $3.8 billion, up 10.6% from the level at 2017 end.

For the first half of 2018, net cash provided by operating activities totaled $629 million, up 18% year over year.

Buyback Program

During the second quarter, the company repurchased 1.12 million shares worth $129.6 million.

Zacks Rank

Universal Health currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

UnitedHealth Group Incorporated’s (UNH - Free Report) second-quarter bottom line beat estimates on the back of higher revenues and solid performances by both segments in the last reported quarter.

Centene Inc.’s (CNC - Free Report) second-quarter earnings surpassed estimates, majorly driven by solid revenues and membership growth.

Anthem Inc. came up with an earnings beat in the second quarter, riding on a strong medical cost performance.

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