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.
Universal Health (UHS) Q3 Earnings Miss Mark, Decline Y/Y
Read MoreHide Full Article
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2021 adjusted earnings of $2.67 per share, which missed the Zacks Consensus Estimate by 4.3%. The bottom line decreased 7.3% year over year.
Results were hurt by escalating expenses and a weak performance by its Behavioral Health Care Services segment.
While adjusted admissions on same facility basis at the company’s Acute Care Hospital Services segment climbed 12.4% year over year in the third quarter, the same for Behavioral Health Care Services segment dipped 2.7% year over year.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Net revenues of $3.2 billion improved 8.3% year over year. The top line met the consensus mark.
Total operating costs rose 10.9% year over year to $2.8 billion in the second quarter, mainly due to increased salaries, wages and benefits, other operating expenses, supplies expense, depreciation and amortization.
Segmental Update
Acute Care Hospital Services
On same facility basis, adjusted patient days increased 10.9% year over year in the third quarter. Net revenues improved 13.1% year over year in the quarter on same facility basis from the company’s acute care services.
Behavioral Health Care Services
In the quarter under review, adjusted patient days on same facility basis slid 2.1% year over year. Net revenues drawn from the company’s behavioral health care services inched up 2% year over year.
Financial Update (as of Sep 30, 2021)
Universal Health exited the third quarter with cash and cash equivalents of $190 million, down 84.5% from the level at 2020 end.
The company had no borrowings outstanding and $1.196 billion of available borrowing capacity, net of outstanding letters of credit.
Total assets of $12.8 billion fell 4.7% from the figure as of Dec 31, 2020.
The company’s long-term debt totaled $3.7 billion, which increased 5.3% from the 2020-end level.
During the first nine months of 2021, net cash provided by operating activities of $562 million plunged 74.7% from the year-ago comparable period’s figure. This was mainly due to an unfavorable change stemming from the repayments of Medicare accelerated payments, unfavorable change in accounts receivable and accrued and deferred income taxes, etc.
Share Repurchase Update
In the third quarter, the company bought back 2.78 million shares worth $419.1 million.
As of Sep 30, 2021, the company had an aggregate stock buyback plan of $3.7 billion, which was originally approved by its board of directors in various increments since 2014.
Zacks Rank
Universal Health currently carries a Zacks Rank #4 (Sell).
Of the medical sector players that have reported second-quarter results so far, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Anthem, Inc. beat the Zacks Consensus Estimate.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Universal Health (UHS) Q3 Earnings Miss Mark, Decline Y/Y
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2021 adjusted earnings of $2.67 per share, which missed the Zacks Consensus Estimate by 4.3%. The bottom line decreased 7.3% year over year.
Results were hurt by escalating expenses and a weak performance by its Behavioral Health Care Services segment.
While adjusted admissions on same facility basis at the company’s Acute Care Hospital Services segment climbed 12.4% year over year in the third quarter, the same for Behavioral Health Care Services segment dipped 2.7% year over year.
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 of $3.2 billion improved 8.3% year over year. The top line met the consensus mark.
Total operating costs rose 10.9% year over year to $2.8 billion in the second quarter, mainly due to increased salaries, wages and benefits, other operating expenses, supplies expense, depreciation and amortization.
Segmental Update
Acute Care Hospital Services
On same facility basis, adjusted patient days increased 10.9% year over year in the third quarter. Net revenues improved 13.1% year over year in the quarter on same facility basis from the company’s acute care services.
Behavioral Health Care Services
In the quarter under review, adjusted patient days on same facility basis slid 2.1% year over year. Net revenues drawn from the company’s behavioral health care services inched up 2% year over year.
Financial Update (as of Sep 30, 2021)
Universal Health exited the third quarter with cash and cash equivalents of $190 million, down 84.5% from the level at 2020 end.
The company had no borrowings outstanding and $1.196 billion of available borrowing capacity, net of outstanding letters of credit.
Total assets of $12.8 billion fell 4.7% from the figure as of Dec 31, 2020.
The company’s long-term debt totaled $3.7 billion, which increased 5.3% from the 2020-end level.
During the first nine months of 2021, net cash provided by operating activities of $562 million plunged 74.7% from the year-ago comparable period’s figure.
This was mainly due to an unfavorable change stemming from the repayments of Medicare accelerated payments, unfavorable change in accounts receivable and accrued and deferred income taxes, etc.
Share Repurchase Update
In the third quarter, the company bought back 2.78 million shares worth $419.1 million.
As of Sep 30, 2021, the company had an aggregate stock buyback plan of $3.7 billion, which was originally approved by its board of directors in various increments since 2014.
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.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Anthem, Inc. beat the Zacks Consensus Estimate.