Universal Health Services Inc. (UHS - Free Report) reported first-quarter 2019 adjusted earnings of $2.45 per share, missing the Zacks Consensus Estimate by 5.8%. Meanwhile, the bottom line matched the prior-year quarter’s figure on the back of revenue growth.
Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in the market value of shares of certain marketable securities.
Net revenues increased 4.3% year over year to $2.8 billion, banking on higher admissions and patient days. However, the metric lagged the Zacks Consensus Estimate by 0.4%.
Total operating expenses of $2.5 billion at the end of the first quarter rose4.7% year over year, mainly due to salaries, wages and benefits along with other operating expense plus supplies expenses.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Acute Care Hospitals:
Adjusted admissions and adjusted patient days were up 4.9% and 4.4%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 4.7% in the first quarter, majorly aided by a rise in admissions and patient days.
On same facility basis, adjusted admissions inched up 2.9% while adjusted patient days dipped 0.9%, both on a year-over-year basis. Net revenues were up 3% during the quarter under review on same facility basis.
As of Mar 31, 2019, the company had cash and cash equivalents of nearly $62.7 million, down 40.4% from the year-end 2018-level.
Total assets were $11.7 billion as of Mar 31, 2019, up 4.1% from the figure as of 2018 end.
The company’s long-term debt came in at $ 3.8 billion, down 2.9% from the number as of Dec 31, 2018.
For the first quarter, net cash provided by operating activities totaled $391 million, down 4.6% year over year due to an unfavorable change in accounts receivable as well as other combined adverse changes.
During the first quarter, the company bought back shares worth $106.3 million.
Moreover, last December, its board of directors authorized a $500-million jump from the existing share repurchase program.
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.
Upcoming Releases From Medical Sector
Some stocks worth considering from the medical sector are as follows:
Aduro Biotech, Inc. (ADRO - Free Report) is slated to release first-quarter earnings figures on May 1. This stock has an Earnings ESP of +82.00% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
bluebird bio, Inc. (BLUE - Free Report) has an Earnings ESP of +12.12% and a Zacks Rank of 3. The company is set to report first-quarter earnings on May 1.
Humana Inc. (HUM - Free Report) is set to report first-quarter 2019 earnings performance on May 1. The stock has an Earnings ESP of +0.84% and a Zacks Rank of 3.
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