Universal Health (UHS) Beats On Q1 Earnings, Misses Revenues
Zacks Investment Research | Apr 25, 2017 10:23PM ET
Universal Health Services Inc. (NYSE:UHS) reported first-quarter 2017 adjusted earnings of $2.10 per share that surpassed the Zacks Consensus Estimate by 1.9%. Earnings also improved 6% over the prior-year quarter on the back of higher revenues.
Net revenue increased 6.7% year over year to $2.61 billion but missed the Zacks Consensus Estimate by 1.5%.
Segment Update
Acute Care Hospitals: Adjusted admissions and adjusted patient days increased 5.1% and 1.7%, respectively, over the prior-year quarter. Net revenue from acute care services climbed 4.8% in the first quarter.
On a same facility basis, operating margin deteriorated by 140 basis points over the last-year quarter to 19.7%.
The provision for doubtful accounts at acute care hospitals totaled nearly $181 million, up 28.6% year over year.
Universal Health is well known for providing care to deprived patients at low costs. This quarter too, the company provided ‘charity care and uninsured discounts’ of approximately $416 million, up 20.6% year over year.
Behavioral hospitals: On a same facility basis, adjusted admissions increased 2.4% while adjusted patient days increased 0.2%, both on a year-over-year basis. On a same facility basis, net revenue increased 1.4% year over year during the first quarter.
The operating margins of 25.6% deteriorated 190 basis points over the last-year quarter.
Provision for doubtful accounts decreased 18% year over year to $162.8 million. Operating charges of $2.2 billion were up 8.4% year over year owing to an increase in salaries, wages and benefits, other operating expenses, supply expenses, depreciation and amortization.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
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