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Universal Health (UHS) to Post Q3 Earnings: What's in Store?
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Universal Health Services, Inc. (UHS - Free Report) is scheduled to release third-quarter 2022 results on Oct 25, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for Universal Health’s third-quarter earnings per share is pegged at $2.40, indicating a decline of 10.1% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $3.3 billion, suggesting 4.9% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Universal Health’s bottom line beat estimates in two of the trailing four quarters and missed the mark twice, the average negative surprise being 1.8%. This is depicted in the chart below:
Universal Health Services, Inc. Price and EPS Surprise
In the third quarter, revenues of Universal Health are likely to have gained on strong contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments. Both segments are likely to have benefited from UHS’ continuous expansion initiatives either by inaugurating acute care hospitals or adding licensed beds to its behavioral health centers in different regions.
The Zacks Consensus Estimate for Acute Care Hospital Services segment’s net revenues is pegged at $1.9 billion, indicating an improvement of 4.1% from the prior-year quarter’s reported figure.
The consensus mark for the Behavioral Health Care Services segment’s net revenues stands at $1.4 billion, suggesting 6.6% growth from the year-ago quarter’s reported figure.
However, the Acute Care Hospital Services unit might have persistently grappled with lower patient volumes in the to-be-reported quarter.
Patient admissions, the most significant contributor to a hospital’s revenues, might have declined at its acute care facilities in the to-be-reported quarter because the fall in COVID-related patient admissions at the said facilities might not have been partly offset by an equal increase in non-COVID patients. This, in turn, is likely to have strained the segmental revenues and margins in the third quarter.
The Zacks Consensus Estimate for acute care hospitals either owned or leased by Universal Health in the third quarter hints at an increase by one facility from the prior-year quarter’s level.
However, the bottom line of Universal Health is expected to have taken a hit from elevated labor costs arising from the scarcity of nurses and other medical personnel. This remains a significant headwind that continues to trouble the entire US nation for quite some.
To tide over the challenge, UHS pursues investments in recruitment and retention efforts. This, in turn, is likely to have escalated the operating expenses of Universal Health in the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Universal Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here as elaborated below.
Earnings ESP: Universal Health has an Earnings ESP of -15.83% because the Most Accurate Estimate of $2.02 is pegged lower than the Zacks Consensus Estimate of $2.40. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While an earnings beat looks uncertain for Universal Health, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this time around:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 1, currently. The Zacks Consensus Estimate for HUM’s third-quarter 2022 earnings is pegged at $6.24 per share, indicating an improvement of 29.2% from the year-ago quarter’s reported figure.
Humana’s earnings surpassed estimates in each of the trailing four quarters.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for BMRN’s third-quarter 2022 earnings is pegged at 36 cents per share, which doubled from the prior-year quarter’s reported figure.
BioMarin Pharmaceutical’s earnings beat estimates in each of the trailing four quarters.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for AZN’s third-quarter 2022 earnings is pegged at 77 cents per share, indicating a 42.6% increase from the prior-year quarter’s reported figure.
AstraZeneca’s earnings outpaced estimates in three of the trailing four quarters and missed the mark once.
Image: Shutterstock
Universal Health (UHS) to Post Q3 Earnings: What's in Store?
Universal Health Services, Inc. (UHS - Free Report) is scheduled to release third-quarter 2022 results on Oct 25, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for Universal Health’s third-quarter earnings per share is pegged at $2.40, indicating a decline of 10.1% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $3.3 billion, suggesting 4.9% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Universal Health’s bottom line beat estimates in two of the trailing four quarters and missed the mark twice, the average negative surprise being 1.8%. This is depicted in the chart below:
Universal Health Services, Inc. Price and EPS Surprise
Universal Health Services, Inc. price-eps-surprise | Universal Health Services, Inc. Quote
Factors to Note
In the third quarter, revenues of Universal Health are likely to have gained on strong contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments. Both segments are likely to have benefited from UHS’ continuous expansion initiatives either by inaugurating acute care hospitals or adding licensed beds to its behavioral health centers in different regions.
The Zacks Consensus Estimate for Acute Care Hospital Services segment’s net revenues is pegged at $1.9 billion, indicating an improvement of 4.1% from the prior-year quarter’s reported figure.
The consensus mark for the Behavioral Health Care Services segment’s net revenues stands at $1.4 billion, suggesting 6.6% growth from the year-ago quarter’s reported figure.
However, the Acute Care Hospital Services unit might have persistently grappled with lower patient volumes in the to-be-reported quarter.
Patient admissions, the most significant contributor to a hospital’s revenues, might have declined at its acute care facilities in the to-be-reported quarter because the fall in COVID-related patient admissions at the said facilities might not have been partly offset by an equal increase in non-COVID patients. This, in turn, is likely to have strained the segmental revenues and margins in the third quarter.
The Zacks Consensus Estimate for acute care hospitals either owned or leased by Universal Health in the third quarter hints at an increase by one facility from the prior-year quarter’s level.
However, the bottom line of Universal Health is expected to have taken a hit from elevated labor costs arising from the scarcity of nurses and other medical personnel. This remains a significant headwind that continues to trouble the entire US nation for quite some.
To tide over the challenge, UHS pursues investments in recruitment and retention efforts. This, in turn, is likely to have escalated the operating expenses of Universal Health in the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Universal Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here as elaborated below.
Earnings ESP: Universal Health has an Earnings ESP of -15.83% because the Most Accurate Estimate of $2.02 is pegged lower than the Zacks Consensus Estimate of $2.40. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Universal Health currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Universal Health, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this time around:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 1, currently. The Zacks Consensus Estimate for HUM’s third-quarter 2022 earnings is pegged at $6.24 per share, indicating an improvement of 29.2% from the year-ago quarter’s reported figure.
Humana’s earnings surpassed estimates in each of the trailing four quarters.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for BMRN’s third-quarter 2022 earnings is pegged at 36 cents per share, which doubled from the prior-year quarter’s reported figure.
BioMarin Pharmaceutical’s earnings beat estimates in each of the trailing four quarters.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for AZN’s third-quarter 2022 earnings is pegged at 77 cents per share, indicating a 42.6% increase from the prior-year quarter’s reported figure.
AstraZeneca’s earnings outpaced estimates in three of the trailing four quarters and missed the mark once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.