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Universal Health (UHS) Q1 Earnings, Revenues Miss Estimates
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Universal Health Services Inc. (UHS - Free Report) reported first-quarter 2020 adjusted earnings of $1.73 per share, missing the Zacks Consensus Estimate by 33.2%. Moreover, the bottom line deteriorated 29.4% year over year.
Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in market value of shares of certain marketable securities.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Net revenues increased 0.9% year over year to $2.8 billion. However, the metric lagged the Zacks Consensus Estimate by 2.8%.
Total operating expenses of $2.6 billion at the end of the first quarter rose 5.2% year over year, mainly due to salaries, wages and benefits, other operating expense, supplies expenses along with depreciation and amortization plus lease and rental expense.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 4% and 0.2%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 0.4% year over year.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 2% and 1.3%, respectively, on a year-over-year basis. Net revenues were up 2.2% during the quarter under review on same-facility basis.
Financial Update
As of Mar 31, 2020, the company had cash and cash equivalents of nearly $54.6 million, down 10.8% from the year-end 2019-level.
Total assets were $11.6 billion as of Mar 31, 2020, down 0.4% from the figure as of 2019 end.
The company’s long-term debt was $ 3.7 billion, down 4.1% from the figure as of Dec 31, 2019.
In the first quarter, net cash provided by operating activities totaled $502 million, up 16.3% year over year due a favorable change in accounts receivable, unfavorable change in other working capital accounts and a favorable change million in accrued insurance expense.
Buyback Program
During the first quarter, the company bought back shares worth $196.6 million.
Of the medical sector players that have reported first-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) beat the Zacks Consensus Estimate for earnings, while Centene Corporation (CNC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) missed the same.
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Universal Health (UHS) Q1 Earnings, Revenues Miss Estimates
Universal Health Services Inc. (UHS - Free Report) reported first-quarter 2020 adjusted earnings of $1.73 per share, missing the Zacks Consensus Estimate by 33.2%. Moreover, the bottom line deteriorated 29.4% year over year.
Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in market value of shares of certain marketable securities.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Quarterly Operational Update
Net revenues increased 0.9% year over year to $2.8 billion. However, the metric lagged the Zacks Consensus Estimate by 2.8%.
Total operating expenses of $2.6 billion at the end of the first quarter rose 5.2% year over year, mainly due to salaries, wages and benefits, other operating expense, supplies expenses along with depreciation and amortization plus lease and rental expense.
Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 4% and 0.2%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 0.4% year over year.
Behavioral Hospitals
On same-facility basis, adjusted admissions and adjusted patient days were down 2% and 1.3%, respectively, on a year-over-year basis. Net revenues were up 2.2% during the quarter under review on same-facility basis.
Financial Update
As of Mar 31, 2020, the company had cash and cash equivalents of nearly $54.6 million, down 10.8% from the year-end 2019-level.
Total assets were $11.6 billion as of Mar 31, 2020, down 0.4% from the figure as of 2019 end.
The company’s long-term debt was $ 3.7 billion, down 4.1% from the figure as of Dec 31, 2019.
In the first quarter, net cash provided by operating activities totaled $502 million, up 16.3% year over year due a favorable change in accounts receivable, unfavorable change in other working capital accounts and a favorable change million in accrued insurance expense.
Buyback Program
During the first quarter, the company bought back shares worth $196.6 million.
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.
Other Medical Sector Releases
Of the medical sector players that have reported first-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) beat the Zacks Consensus Estimate for earnings, while Centene Corporation (CNC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) missed the same.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>