Is A Beat Likely For Universal Health (UHS) Q1 Earnings?
Zacks Investment Research | Apr 22, 2019 10:38PM ET
Universal Health Services, Inc. (NYSE:UHS) is set to report first-quarter 2019 results on Apr 25 after market close. In the last reported quarter, the company delivered adjusted earnings of $2.37 per share, beating the Zacks Consensus Estimate by 0.9%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $2.60, up 6.1% year over year.
So, let’s see how things are shaping up for this announcement.
Overall performance of the company is likely to have been fueled by solid performances at both its Acute Care and Behavioral Health segments.
Licensed beds in both Acute Care hospitals and the Behavioral Health centers, which have been increasing since 2012, are expected to maintain the momentum in first-quarter results as well. The bed count is likely to have increased on the back of acquisitions and addition of facilities in the first quarter.
Further, this higher bed count is expected to have aided admissions across both Acute Care and Behavioral Health segments during the first quarter.
The Zacks Consensus Estimate for total revenues in the first quarter is pegged at $2.8 billion, indicating growth of 4.8% from the year-ago reported figure.
Also, the company might have consistently enhanced its shareholder value in the period under review.
However, Universal Health is anticipated to have incurred escalating operating expenses due to higher salaries, wages and benefits plus other operating expenses, which could negatively impact its first-quarter earnings.
What the Quantitative Model States
Our proven model conclusively shows that Universal Health is likely to beat on earnings this to-be-reported quarter. This is because the stock has the two key ingredients of a positive Zacks Investment Research
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