What To Expect For Universal Health's (UHS) Q2 Earnings
Zacks Investment Research | Jul 21, 2019 10:10PM ET
Universal Health Services, Inc. (NYSE:UHS) is set to report second-quarter 2019 results on Jul 25 after market close. In the last reported quarter, the company reported adjusted earnings of $2.45 per share, missing the Zacks Consensus Estimate by 5.8%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $2.49, up 0.8% from the year-ago reported figure.
So, let’s see how things are shaping up for this announcement.
In the second quarter of 2019, the company’s performance is likely to have been fueled by both its Acute Care and Behavioral Health segments. The Zacks Consensus Estimates for net revenues at its Acute Care and Behavioral Health segments implies an upside of 4.8% and 4.5%, respectively, from the prior-year reported numbers.
The Zacks Consensus Estimate for total revenues in the second quarter stands at $2.8 billion, indicating growth of 4.8% from the year-earlier reported figure.
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 second-quarter results as well. The Zacks Consensus Estimate for average licensed beds at Behavioral Health Centers suggests a 2.3% rise from the year-ago reported number. Also, the Zacks Consensus Estimate for average licensed beds at Acute Care Hospitals in the United States and Puerto Rico indicates an increase of 1.9% from the prior-year reported figure.
Higher bed count is owing to the addition of facilities in the second quarter.
Further, this solid bed count is expected to have aided admissions across both Acute Care and Behavioral Health segments during the quarter.
Universal Health 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 second-quarter earnings.
Moreover, its long-term debt, which has been piling up since 2013 (dipped to some extent in the first quarter of 2019), might have deteriorated further. Interest expenses of the company might also remain at elevated levels.
What the Quantitative Model States
Our proven model does not conclusively show that Universal Health is likely to beat on earnings this reporting cycle. This is because the stock needs to have the right combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.