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Universal Health Services, Inc. UHS reported third-quarter 2020 adjusted earnings of $2.88 per share, which outpaced the Zacks Consensus Estimate by 41.8%. The bottom line also improved 44.7% year over year.
Lower costs and increased revenues contributed to its overall performance.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Quarterly Operational Update
Net revenues increased 3.2% year over year to $2.9 billion. This upside can primarily be attributed to the company’s acute care and behavioural health care facilities. Moreover, net revenues outpaced the Zacks Consensus Estimate by 6.1%.
Total operating expenses of $2.5 billion at the end of the third quarter declined 2.7% year over year, primarily owing to lower other operating expenses as well as salaries, wages and benefits.
Acute Care Hospitals
Adjusted admissions and adjusted patient days were down 17.3% and 1.6%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) inched up 5.5% year over year including the favourable impact of the CARES Act and other grant income revenues.
On same-facility basis, adjusted admissions and adjusted patient days were down 5.6% and 3.6%, respectively, year over year. Net revenues were up 1.2% during the quarter under review on same-facility basis including the positive impact of the CARES Act and other grant income revenue reversal.
As of Sep 30, 2020, the company had cash and cash equivalents of $1.1 billion compared with $612 million at 2019 end.
Total assets were $13 billion as of Sep 30, 2020, up 11.5% from the figure as of 2019 end.
The company’s long-term debt was $3.5 billion, down 9.8% from the figure as of Dec 31, 2019.
In the first nine months of 2020, net cash provided by operating activities totaled $2.2 billion, which soared 100.7% year over year. This can primarily be attributed to a favourable change from the Medicare accelerated payments and the deferred CARES Act and other grants, a positive change from the payment deferral of the employer's share of Social Security taxes, a favorable change in accounts receivable and a favorable change in accrued and deferred income taxes, etc.
Universal Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that reported third-quarter results so far, earnings of UnitedHealth Group Incorporated UNH and Centene Corporation CNC beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. HCA missed the same.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
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