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Universal Health (UHS) to Release Q1 Earnings: Factors to Note
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Universal Health Services, Inc. (UHS - Free Report) is slated to release first-quarter 2023 results on Apr 25, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for Universal Health’s first-quarter earnings per share is pegged at $2.15, which remains flat year over year.
The consensus mark for revenues stands at $3,423 million, suggesting 3.9% growth from the year-ago quarter’s reported number. We estimate the metric to increase 3.7% year over year to $3,415.5 million.
Earnings Surprise History
Universal Health’s bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 0.17%. This is depicted in the chart below:
Universal Health Services, Inc. Price and EPS Surprise
Revenues of Universal Health are expected to have benefited on the back of solid contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments in the first quarter. The Zacks Consensus Estimate for Acute Care Hospital Services unit’s net revenues is pegged at $1,960 million, indicating an improvement of 2.5% from the prior-year quarter’s reported figure.
The consensus mark for net revenues in the Behavioral Health Care Services segment stands at $1,472 million, suggesting 7.8% growth from the year-ago quarter’s reported figure.
Higher patient volumes are likely to have driven revenues of the Acute Care Hospital Services segment in the to-be-reported quarter. Additionally, the unit is expected to have been aided by prudent expansion initiatives in the form of inaugurating acute care hospitals.
The Zacks Consensus Estimate for same-facility adjusted admissions in acute care hospitals indicates a rise of 3.3% from the prior-year quarter’s reported figure.
Meanwhile, the growing incidence of mental health issues among Americans is expected to have sustained the solid demand for services provided by the Behavioral Health Care Services unit.
However, the bottom line of Universal Health is likely to have suffered a blow in the first quarter from escalating labor costs stemming from the continued scarcity of nurses and other medical personnel. Higher physician subsidy expense is expected to have dampened the growth prospects of the Acute Care Hospital Services unit. Also, improved interest rates are likely to have increased interest expenses for UHS 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 -0.23%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: UHS currently carries a Zacks Rank of 3.
Stocks to Consider
While an earnings beat looks uncertain for Universal Health, here are some companies from the Medical space, which according to our model, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for NVO’s first-quarter 2023 earnings is pegged at $1.12 per share, indicating an improvement of 19.2% from the year-ago quarter’s reported figure.
Novo Nordisk’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.00%.
Humana Inc. (HUM - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for HUM’s first-quarter 2023 earnings is pegged at $9.31 per share, suggesting 15.8% growth from the year-ago quarter’s reported number.
Humana’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.95%.
Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for OPCH’s first-quarter 2023 earnings is pegged at 17 cents per share, which remains flat year over year.
Option Care Health’s earnings outpaced estimates in two of the trailing four quarters, matched the mark once missed the same on the remaining one occasion, the average surprise being 8.83%.
Image: Bigstock
Universal Health (UHS) to Release Q1 Earnings: Factors to Note
Universal Health Services, Inc. (UHS - Free Report) is slated to release first-quarter 2023 results on Apr 25, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for Universal Health’s first-quarter earnings per share is pegged at $2.15, which remains flat year over year.
The consensus mark for revenues stands at $3,423 million, suggesting 3.9% growth from the year-ago quarter’s reported number. We estimate the metric to increase 3.7% year over year to $3,415.5 million.
Earnings Surprise History
Universal Health’s bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 0.17%. 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
Revenues of Universal Health are expected to have benefited on the back of solid contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments in the first quarter. The Zacks Consensus Estimate for Acute Care Hospital Services unit’s net revenues is pegged at $1,960 million, indicating an improvement of 2.5% from the prior-year quarter’s reported figure.
The consensus mark for net revenues in the Behavioral Health Care Services segment stands at $1,472 million, suggesting 7.8% growth from the year-ago quarter’s reported figure.
Higher patient volumes are likely to have driven revenues of the Acute Care Hospital Services segment in the to-be-reported quarter. Additionally, the unit is expected to have been aided by prudent expansion initiatives in the form of inaugurating acute care hospitals.
The Zacks Consensus Estimate for same-facility adjusted admissions in acute care hospitals indicates a rise of 3.3% from the prior-year quarter’s reported figure.
Meanwhile, the growing incidence of mental health issues among Americans is expected to have sustained the solid demand for services provided by the Behavioral Health Care Services unit.
However, the bottom line of Universal Health is likely to have suffered a blow in the first quarter from escalating labor costs stemming from the continued scarcity of nurses and other medical personnel. Higher physician subsidy expense is expected to have dampened the growth prospects of the Acute Care Hospital Services unit. Also, improved interest rates are likely to have increased interest expenses for UHS 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 -0.23%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: UHS currently carries a Zacks Rank of 3.
Stocks to Consider
While an earnings beat looks uncertain for Universal Health, here are some companies from the Medical space, which according to our model, have the right combination of elements to beat on earnings this time around:
Novo Nordisk A/S (NVO - Free Report) has an Earnings ESP of +10.71% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for NVO’s first-quarter 2023 earnings is pegged at $1.12 per share, indicating an improvement of 19.2% from the year-ago quarter’s reported figure.
Novo Nordisk’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.00%.
Humana Inc. (HUM - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for HUM’s first-quarter 2023 earnings is pegged at $9.31 per share, suggesting 15.8% growth from the year-ago quarter’s reported number.
Humana’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.95%.
Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for OPCH’s first-quarter 2023 earnings is pegged at 17 cents per share, which remains flat year over year.
Option Care Health’s earnings outpaced estimates in two of the trailing four quarters, matched the mark once missed the same on the remaining one occasion, the average surprise being 8.83%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.