Universal Health Services Inc. (UHS - Free Report) reported fourth-quarter 2017 adjusted earnings of $2.00 per share that surpassed the Zacks Consensus Estimate of $1.84 by 8.7%. Earnings also grew 11% year over year.
Net revenues increased 6.7% year over year to $2.64 billion in the fourth quarter, beating the Zacks Consensus Estimate of $2.63 billion.
Total operating expenses of $2.3 billion at the end of the fourth quarter increased 6.6% year over year.
Full-Year Update
For 2017, the company reported net income of $7.81 per share, up 9.3% year over year.
Universal Health’s net revenues came in at $10.41 billion, up 6.6% from 2016.
Total operating expenses were $9.1 billion, up 7.6% year over year.
Quarterly Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days increased 7.3% and 5.2%, respectively, from the prior-year quarter. Net revenues from acute care services climbed 6.5% in the fourth quarter.
Behavioral Hospitals
On a same facility basis, adjusted admissions increased 2.5% while adjusted patient days declined 0.7%, both on a year-over-year basis. Net revenues increased 1.6% during the quarter on a same facility basis.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Financial Update
As of Dec 31, 2017, the company had cash and cash equivalents of nearly $74.4 million, up 120% from year-end 2016.
Total assets were $10.8 billion as of Dec 31, 2017, up 4.3% from year-end 2016.
The company managed to lower its debt burden, as evident from its long-term debt of $3.5 billion as of Dec 31, 2017, down 13% from year-end 2016.
For 2017, net cash provided by operating activities decreased 11.3% to $1.18 billion year over year.
Buyback Program
In November 2017, the board of directors authorized a $400 million increase in Universal Health’s stock repurchase program, which raised the aggregate authorization to $1.2 billion from $800 million approved during 2016 and 2014.
During the fourth quarter, the company repurchased nearly 1 million shares at an aggregate cost of $100.8 million.
In 2017, the company repurchased approximately 2.96 million shares at an aggregate cost of approximately $322.2 million.
2018 Guidance
The company expects adjusted earnings per share to be within $9.25 to $9.90.
Revenues are expected in the range of $10.923 billion to $11.063 billion.
Zacks Rank & Performance of Peers
Universal Health presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported their fourth-quarter earnings so far, Centene Corp. (CNC - Free Report) , Anthem Inc and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate for earnings.
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Universal Health Services Inc. (UHS - Free Report) reported fourth-quarter 2017 adjusted earnings of $2.00 per share that surpassed the Zacks Consensus Estimate of $1.84 by 8.7%. Earnings also grew 11% year over year.
Net revenues increased 6.7% year over year to $2.64 billion in the fourth quarter, beating the Zacks Consensus Estimate of $2.63 billion.
Total operating expenses of $2.3 billion at the end of the fourth quarter increased 6.6% year over year.
Full-Year Update
For 2017, the company reported net income of $7.81 per share, up 9.3% year over year.
Universal Health’s net revenues came in at $10.41 billion, up 6.6% from 2016.
Total operating expenses were $9.1 billion, up 7.6% year over year.
Quarterly Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days increased 7.3% and 5.2%, respectively, from the prior-year quarter. Net revenues from acute care services climbed 6.5% in the fourth quarter.
Behavioral Hospitals
On a same facility basis, adjusted admissions increased 2.5% while adjusted patient days declined 0.7%, both on a year-over-year basis. Net revenues increased 1.6% during the quarter on a same facility basis.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Financial Update
As of Dec 31, 2017, the company had cash and cash equivalents of nearly $74.4 million, up 120% from year-end 2016.
Total assets were $10.8 billion as of Dec 31, 2017, up 4.3% from year-end 2016.
The company managed to lower its debt burden, as evident from its long-term debt of $3.5 billion as of Dec 31, 2017, down 13% from year-end 2016.
For 2017, net cash provided by operating activities decreased 11.3% to $1.18 billion year over year.
Buyback Program
In November 2017, the board of directors authorized a $400 million increase in Universal Health’s stock repurchase program, which raised the aggregate authorization to $1.2 billion from $800 million approved during 2016 and 2014.
During the fourth quarter, the company repurchased nearly 1 million shares at an aggregate cost of $100.8 million.
In 2017, the company repurchased approximately 2.96 million shares at an aggregate cost of approximately $322.2 million.
2018 Guidance
The company expects adjusted earnings per share to be within $9.25 to $9.90.
Revenues are expected in the range of $10.923 billion to $11.063 billion.
Zacks Rank & Performance of Peers
Universal Health presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported their fourth-quarter earnings so far, Centene Corp. (CNC - Free Report) , Anthem Inc and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate for earnings.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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