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Universal Health (UHS) Q3 Earnings Beat, 2018 View Narrows

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Universal Health Services Inc. (UHS - Free Report) delivered third-quarter 2018 adjusted earnings of $2.23 per share, beating the Zacks Consensus Estimate by 11.5%. Moreover, the bottom line surged 36% year over year.

Universal Health Services, Inc. Price, Consensus and EPS Surprise

Net revenues increased 4.2% year over year to $2.6 billion. However, the top line lagged the Zacks Consensus Estimate by 1.2%.

Total operating expenses of $2.3 billion in the third quarter increased 4.7% year over year.

Segment Update

Acute Care Hospitals


Adjusted admissions and adjusted patient days inched up 1.5% and 4.1%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 6.7% in the third quarter.

Behavioral Hospitals

On the basis of same facility, adjusted admissions increased 4.7% while adjusted patient days nudged up 0.6%, both on a year-over-year basis. Net revenues rose 2.5% during the quarter under review on a same facility basis.

Financial Update

As of Sep 30, 2018, the company had cash and cash equivalents of nearly $83.7 million, up 12.5% from year-end 2017.

Total assets were $11.2 billion as of Jun 30, 2018, up 4.8% from year-end 2017.

The long-term debt of the company stood at $ 3.7 billion, up 5.4% from year-end 2017.

For the first nine months of 2018, net cash provided by operating activities totaled $975 million, up 10.9% year over year.

Share Repurchase Update

During the third quarter, the company bought back 0.9 million shares worth $117.9 million.

2018 Guidance Narrows

The company lowered the upper end of its outlook to $9.25-$9.60 per share from $9.25-$9.90, guided earlier.  

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.

Releases From the Medical Sector

In the third quarter, the bottom line of UnitedHealth Group Incorporated (UNH - Free Report) and Centene Inc. (CNC - Free Report) surpassed the respective Zacks Consensus Estimate.

Anthem Inc. is set to report third-quarter results on Oct 31, 2018. The company has an Earnings ESP of +1.69% and Zacks rank #2 (Buy).

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