Universal Health Services, Inc. ( UHS Quick Quote 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. 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.
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.
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 Quick Quote UNH - Free Report) and Centene Corporation ( CNC Quick Quote CNC - Free Report) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. ( HCA Quick Quote HCA - Free Report) missed the same. Have You Seen Zacks’ 2020 Election Stock Report?
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