We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Universal Health Services (UHS) Up 1% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Universal Health Services (UHS - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Universal Health Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Universal Health Q1 Earnings, Revenues Miss Estimates
Universal Health reported first-quarter 2020 adjusted earnings of $1.73 per share, missing the Zacks Consensus Estimate by 33.2%. Moreover, the bottom line deteriorated 29.4% year over year.
Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in market value of shares of certain marketable securities.
Quarterly Operational Update
Net revenues increased 0.9% year over year to $2.8 billion. However, the metric lagged the Zacks Consensus Estimate by 2.8%.
Total operating expenses of $2.6 billion at the end of the first quarter rose 5.2% year over year, mainly due to salaries, wages and benefits, other operating expense, supplies expenses along with depreciation and amortization plus lease and rental expense.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 4% and 0.2%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 0.4% year over year.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 2% and 1.3%, respectively, on a year-over-year basis. Net revenues were up 2.2% during the quarter under review on same-facility basis.
Financial Update
As of Mar 31, 2020, the company had cash and cash equivalents of nearly $54.6 million, down 10.8% from the year-end 2019-level.
Total assets were $11.6 billion as of Mar 31, 2020, down 0.4% from the figure as of 2019 end.
The company’s long-term debt was $ 3.7 billion, down 4.1% from the figure as of Dec 31, 2019.
In the first quarter, net cash provided by operating activities totaled $502 million, up 16.3% year over year due a favorable change in accounts receivable, unfavorable change in other working capital accounts and a favorable change million in accrued insurance expense.
Buyback Program
During the first quarter, the company bought back shares worth $196.6 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -73.16% due to these changes.
VGM Scores
Currently, Universal Health Services has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Universal Health Services has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Universal Health Services (UHS) Up 1% Since Last Earnings Report?
A month has gone by since the last earnings report for Universal Health Services (UHS - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Universal Health Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Universal Health Q1 Earnings, Revenues Miss Estimates
Universal Health reported first-quarter 2020 adjusted earnings of $1.73 per share, missing the Zacks Consensus Estimate by 33.2%. Moreover, the bottom line deteriorated 29.4% year over year.
Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in market value of shares of certain marketable securities.
Quarterly Operational Update
Net revenues increased 0.9% year over year to $2.8 billion. However, the metric lagged the Zacks Consensus Estimate by 2.8%.
Total operating expenses of $2.6 billion at the end of the first quarter rose 5.2% year over year, mainly due to salaries, wages and benefits, other operating expense, supplies expenses along with depreciation and amortization plus lease and rental expense.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 4% and 0.2%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 0.4% year over year.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 2% and 1.3%, respectively, on a year-over-year basis. Net revenues were up 2.2% during the quarter under review on same-facility basis.
Financial Update
As of Mar 31, 2020, the company had cash and cash equivalents of nearly $54.6 million, down 10.8% from the year-end 2019-level.
Total assets were $11.6 billion as of Mar 31, 2020, down 0.4% from the figure as of 2019 end.
The company’s long-term debt was $ 3.7 billion, down 4.1% from the figure as of Dec 31, 2019.
In the first quarter, net cash provided by operating activities totaled $502 million, up 16.3% year over year due a favorable change in accounts receivable, unfavorable change in other working capital accounts and a favorable change million in accrued insurance expense.
Buyback Program
During the first quarter, the company bought back shares worth $196.6 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -73.16% due to these changes.
VGM Scores
Currently, Universal Health Services has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Universal Health Services has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.