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Universal Health (UHS) Q4 Earnings Beat on Higher Patient Days
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Universal Health Services, Inc. (UHS - Free Report) reported fourth-quarter 2021 adjusted earnings of $2.95 per share, which beat the Zacks Consensus Estimate of $2.83. Yet, the bottom line decreased from $3.59 per share a year ago.
Net revenues of $3,275.3 million improved from $3,086.9 million a year ago. The top line beat the consensus mark of $3,145 million.
The better-than-expected fourth-quarter results were aided by higher patient days and adjusted admissions. Also, the company’s strategic moves like rate increases in Kentucky Medicaid Managed Care Hospital aided the results. The positives were partially offset by escalating expenses.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Total operating costs rose 10.8% year over year to $2,961.6 million for the fourth quarter, mainly due to increased salaries, wages and benefits, other operating expenses, and cost of supplies.
UHS generated a net income of $233.9 million, down from $307.7 million in the year-ago period.
Segmental Update
Acute Care Hospital Services
On a same facility basis, adjusted patient days increased 5% year over year for the fourth quarter. Net revenues improved 4.4% year over year for the quarter on a same facility basis owing to the company’s acute care services. Adjusted admissions rose 8.9% year over year for the fourth quarter.
Behavioral Health Care Services
For the quarter under review, adjusted patient days on a same facility basis increased 0.5% year over year. Net revenues drawn from behavioral health care services inched up 5.4% year over year. Adjusted admissions rose 1.5% year over year for the fourth quarter.
Financial Update (as of Dec 31, 2021)
Universal Health exited the fourth quarter with cash and cash equivalents of $115.3 million, down 90.6% from the level at 2020-end.
As of Dec 31, 2021, the company had $854 million of available borrowing capacity under the $1.2-billion credit revolver.
Total assets of $13.1 billion fell 2.8% from the figure as of Dec 31, 2020.
Long-term debt totaled $4,141.9 million at fourth quarter-end, which increased 17.5% from the 2020-end level. Current maturities of long-term debt amounted to $48.4 million.
In 2021, net cash provided by operating activities of $883.7 million plunged 62.6% from the year-ago comparable figure. This was mainly due to an unfavorable change stemming from the repayment of Medicare accelerated payments, an unfavorable change in accounts receivable, and accrued and deferred income taxes, etc.
Share Repurchase Update
In the fourth quarter, UHS bought back 3.4 million shares worth $432.3 million.
Following an increased authorization approved in February 2022, the company has an aggregate buyback program of $1.5 billion.
Guidance
Universal Health expects net revenues for 2022 within $13,424-$13,694 million, indicating an increase from $12,642.1 million a year ago. Adjusted earnings per share projection of $11.90-$12.90 indicates an increase from $11.82 in 2021.
UHS expects capital expenditures for 2022 in the range of $950-$1,100 million, indicating an increase from $855.7 million in 2021.
Of the Medical space players that have reported fourth-quarter results so far, Tenet Healthcare Corporation (THC - Free Report) , Mednax, Inc. (MD - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the Zacks Consensus Estimate for earnings.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate by 73.1%, thanks to reduced expenses and operational excellence. Profits from Tenet Healthcare’s Hospital Operations and Other business increased year over year, aiding the results.
Mednax reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9% due to a rise in patient volumes. On a preliminary basis, Mednax expects 2022 adjusted EBITDA to be at least $270 million.
Community Health Systems reported fourth-quarter 2021 adjusted net income of $1.15 per share, beating the Zacks Consensus Estimate by 130% on the back of lower net interest expenses. CYH anticipates net income per share for 2022 in the range of $1-$1.50.
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Universal Health (UHS) Q4 Earnings Beat on Higher Patient Days
Universal Health Services, Inc. (UHS - Free Report) reported fourth-quarter 2021 adjusted earnings of $2.95 per share, which beat the Zacks Consensus Estimate of $2.83. Yet, the bottom line decreased from $3.59 per share a year ago.
Net revenues of $3,275.3 million improved from $3,086.9 million a year ago. The top line beat the consensus mark of $3,145 million.
The better-than-expected fourth-quarter results were aided by higher patient days and adjusted admissions. Also, the company’s strategic moves like rate increases in Kentucky Medicaid Managed Care Hospital aided the results. The positives were partially offset by escalating expenses.
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
Total operating costs rose 10.8% year over year to $2,961.6 million for the fourth quarter, mainly due to increased salaries, wages and benefits, other operating expenses, and cost of supplies.
UHS generated a net income of $233.9 million, down from $307.7 million in the year-ago period.
Segmental Update
Acute Care Hospital Services
On a same facility basis, adjusted patient days increased 5% year over year for the fourth quarter. Net revenues improved 4.4% year over year for the quarter on a same facility basis owing to the company’s acute care services. Adjusted admissions rose 8.9% year over year for the fourth quarter.
Behavioral Health Care Services
For the quarter under review, adjusted patient days on a same facility basis increased 0.5% year over year. Net revenues drawn from behavioral health care services inched up 5.4% year over year. Adjusted admissions rose 1.5% year over year for the fourth quarter.
Financial Update (as of Dec 31, 2021)
Universal Health exited the fourth quarter with cash and cash equivalents of $115.3 million, down 90.6% from the level at 2020-end.
As of Dec 31, 2021, the company had $854 million of available borrowing capacity under the $1.2-billion credit revolver.
Total assets of $13.1 billion fell 2.8% from the figure as of Dec 31, 2020.
Long-term debt totaled $4,141.9 million at fourth quarter-end, which increased 17.5% from the 2020-end level. Current maturities of long-term debt amounted to $48.4 million.
In 2021, net cash provided by operating activities of $883.7 million plunged 62.6% from the year-ago comparable figure. This was mainly due to an unfavorable change stemming from the repayment of Medicare accelerated payments, an unfavorable change in accounts receivable, and accrued and deferred income taxes, etc.
Share Repurchase Update
In the fourth quarter, UHS bought back 3.4 million shares worth $432.3 million.
Following an increased authorization approved in February 2022, the company has an aggregate buyback program of $1.5 billion.
Guidance
Universal Health expects net revenues for 2022 within $13,424-$13,694 million, indicating an increase from $12,642.1 million a year ago. Adjusted earnings per share projection of $11.90-$12.90 indicates an increase from $11.82 in 2021.
UHS expects capital expenditures for 2022 in the range of $950-$1,100 million, indicating an increase from $855.7 million in 2021.
Zacks Rank
Universal Health currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Firms
Of the Medical space players that have reported fourth-quarter results so far, Tenet Healthcare Corporation (THC - Free Report) , Mednax, Inc. (MD - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the Zacks Consensus Estimate for earnings.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate by 73.1%, thanks to reduced expenses and operational excellence. Profits from Tenet Healthcare’s Hospital Operations and Other business increased year over year, aiding the results.
Mednax reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9% due to a rise in patient volumes. On a preliminary basis, Mednax expects 2022 adjusted EBITDA to be at least $270 million.
Community Health Systems reported fourth-quarter 2021 adjusted net income of $1.15 per share, beating the Zacks Consensus Estimate by 130% on the back of lower net interest expenses. CYH anticipates net income per share for 2022 in the range of $1-$1.50.