Universal Health Services Inc. UHS reported first-quarter 2018 adjusted earnings of $2.45 per share, missing the Zacks Consensus Estimate by 5.4%. However, the bottom line grew 17% year over year.
Net revenues increased 2.9% year over year to $2.7 billion. However, the top line lagged the Zacks Consensus Estimate by 2%.
Total operating expenses of $2.4 billion at the end of the first quarter also increased 4.2% year over year.
Segment Update
Acute Care Hospitals:
Adjusted admissions and adjusted patient days increased 2.3% and 5.4%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 3.7% in the first quarter.
Behavioral hospitals:
On a same facility basis, adjusted admissions increased 1.6% while adjusted patient days declined 0.4%, both on a year-over-year basis. Net revenues increased 3% during the quarter under review on a same facility basis.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. Price, Consensus and EPS Surprise | Universal Health Services, Inc. Quote
Financial Update
As of Mar 31, 2018, the company had cash and cash equivalents of nearly $73 million, down 1.3% from year-end 2017.
Total assets were $11 billion as of Mar 31, 2018, up 2.4% from year-end 2017.
The company managed to lower its debt burden, evident from its long-term debt of $3.4 billion as of Mar 31, 2018, which declined 4% from year-end 2017.
For the first three months of2018, net cash provided by operating activities totaled $364 million, down 24.7% year over year.
Buyback Program
In November 2017, the board of directors authorized a $400-million increase in Universal Health’s stock repurchase program, raising the aggregate authorization to $1.2 billion from the previous $800 million approved in 2016 and 2014.
Concurrently, during the first quarter, the company repurchased 42,000 shares at an aggregate cost of $4.6 million.
Zacks Rank & Performance of Peers
Universal Health currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players in the Medical sector having reported first-quarter earnings so far, Novartis AG NVS, UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT surpassed the respective Zacks Consensus Estimate.
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