Universal Health Services, Inc. (UHS Quick QuoteUHS - Free Report) is set to report first-quarter 2020 results on Apr 27, after market close.

For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $2.64, indicating a 7.8% increase from the year-ago reported figure.

Let’s see how things are shaping up for this announcement.

In the quarter to be reported, the company’s performance is likely to have been driven by its consistently well-performing segments, namely Acute Care and Behavioral Health. Both segments have been contributing to the top line over the last several quarters.

The consensus mark for net revenues at Acute Care and Behavioral Health suggests a 6.7% and 4% improvement from the respective prior-year reported numbers.

The Zacks Consensus Estimate for total revenues stands at $2.9 billion, implying growth of 3.9% from the year-earlier reported figure.

Licensed beds at both hospitals are likely to have increased, continuing with its trend since 2012. The consensus mark for average licensed beds at Behavorial Health segment suggests a rise of 0.8% while the same for acute care (U.S. and Puerto Rico) indicates an increase of 0.4%.

Universal Health is likely to have continued focusing on its behavioral health joint venture portfolio.

However, the company’s revenues might have suffered at the end of the quarter due to the coronavirus effect. The cancellation of elective surgeries in order to accommodate coronavirus patients in greater numbers might have hurt its top line  to some extent.

Also, the company is anticipated to have incurred escalating expenses due to higher salaries, wages and benefits plus other operating expenses, which in turn, might have weighed on the margins.

What the Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Universal Health this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Universal Health has an Earnings ESP of -13.39%. This is because its Most Accurate Estimate is pegged at $2.29, lower than the Zacks Consensus Estimate of $2.64. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Universal Health carries a Zacks Rank #3, which increases the predictive power of ESP. However, its -13.59% ESP leaves surprise prediction difficult for the stock this time around.

Q4 Highlights and Surprise History

Universal Health’s fourth-quarter 2019 adjusted earnings of $2.79 per share beat the Zacks Consensus Estimate by 6.9%. Moreover, the bottom line increased 17.7% year over year on the back of higher revenues.

The company managed to beat on earnings in two of the trailing four quarters, missing the same in the other two. The average trailing four-quarter positive surprise is 0.01%.

Stocks to Consider

Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:

Centene Corporation (CNC Quick QuoteCNC - Free Report) has an Earnings ESP of +21.25% and a Zacks Rank #2. The company is scheduled to release first-quarter earnings on Apr 28.

Anthem, Inc. is slated to announce first-quarter earnings on Apr 29. The stock has an Earnings ESP of +1.28% and a Zacks Rank of 3.

MEDNAX, Inc. (MD Quick QuoteMD - Free Report) is set to report first-quarter earnings on May 7. The stock is #2 Ranked and has an Earnings ESP of +4.15%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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