Earnings Review and Free Research Report: Universal Health Services’ Quarterly Revenue Grew 7.5%
LONDON, UK / ACCESSWIRE / August 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Universal Health Services, Inc. (NYSE: UHS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UHS, following the Company's disclosure of its second quarter fiscal 2017 financial results on July 25, 2017. The hospital and health facility operator missed market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
Universal Health Services ("UHS")'s net revenues rose 7.5% to $2.61 billion during Q2 2017 compared to $2.43 billion during Q2 2016. The Company's revenue numbers fell short of analysts' estimates of $2.63 billion.
For Q2 2017, UHS' earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased 3.2% to $438.3 million compared with $424.8 million during Q2 2016.
UHS reported net income attributable to the Company of $185.4 million, or $1.91 per diluted share, for Q2 2017 compared to $185.6 million, or $1.89 per diluted share, during Q2 2016. For the three-month period ended June 30, 2017, the Company's adjusted net income attributable to UHS was $188.1 million, or $1.94 per diluted share, compared to $191.1 million, or $1.94 per diluted share, during the prior year's same quarter. UHS' earnings numbers came in below Wall Street's estimates of $2.07 per share.
Segment Results
Acute Care Services - During Q2 2017, UHS' acute care hospitals owned during both periods (same facility basis), adjusted admissions grew 6.0% and adjusted patient days increased 2.7%, compared to Q2 2016. The Company's net revenues from its acute care services increased 5.1% on a y-o-y basis in the reported quarter to $1.47 billion. Net revenue per adjusted admission remained unchanged at these facilities while net revenue per adjusted patient day increased 3.2% on a y-o-y basis.
UHS' acute care hospitals provided charity care and uninsured discounts, based on gross charges, amounting to approximately $485 million and $339 million during the three-month periods ended June 30, 2017 and 2016, respectively. The provision for doubtful accounts at the Company's acute care hospitals amounted to approximately $187 million and $179 million during the three-month periods ended June 30, 2017 and 2016, respectively.
Behavioral Health Care Services – During Q2 2017, UHS' behavioral health care facilities, on the same facility basis, adjusted admissions increased 3.7% while adjusted patient days increased 1.4% on a y-o-y basis. At these facilities, net revenue per adjusted admission decreased 1.4% while net revenue per adjusted patient day increased 0.9% during Q2 2017. On a same facility basis, the Company's behavioral health care services' net revenues increased 2.2% on a y-o-y basis.
Cash Matters
For the six months ended June 30, 2017, UHS' net cash provided by operating activities decreased to $534 million from $836 million generated during H1 2016. The decline was primarily attributed to a $217 million unfavorable change in other working capital accounts resulting primarily from changes in accrued compensation and accounts payable due to the timing of disbursements, and a $92 million unfavorable change in cash flows from foreign currency forward exchange contracts related to the Company's investments in the UK.
In February of 2016, UHS' Board of Directors authorized a $400 million increase to the Company's stock repurchase program, which increased the aggregate authorization to $800 million from the previous $400 million authorization approved during Q3 2014. In conjunction with this program, during Q2 2017 UHS repurchased 983,900 shares at an aggregate cost of $115.9 million at approximately $118 per share. During H1 2017, the Company has repurchased approximately 1.1 million shares at an aggregate cost of approximately $127.1 million at approximately $117 per share. Since inception of the program through June 30, 2017, UHS has bought back approximately 5.47 million shares at an aggregate cost of approximately $641.2 million, or approximately $117 per share.
Outlook
UHS stated that based upon the operating trends and financial results experienced during H1 2017, it has revised adjusted net income attributable to UHS projection for FY17 to be in the range of $7.50 to $8.00 per diluted share from the previously provided range of $7.70 to $8.20 per diluted share.
Stock Performance
On Wednesday, August 02, 2017, Universal Health Services' stock closed the trading session at $108.64, slipping 2.28% from its previous closing price of $111.18. A total volume of 1.04 million shares were exchanged during the session, which was above the 3-month average volume of 762.97 thousand shares. The stock gained 2.12% since the start of the year. Shares of the Company have a PE ratio of 14.78 and have a dividend yield of 0.37%. The stock currently has a market cap of $10.40 billion.
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