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Universal Health (UHS) to Post Q4 Earnings: What to Expect
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Universal Health Services, Inc. (UHS - Free Report) is set to report its fourth-quarter 2022 results on Feb 27, after the closing bell.
In the last reported quarter, the hospital operator reported adjusted earnings per share of $2.54, beating the Zacks Consensus Estimate by 5.8% due to higher patient admissions at its acute care and behavioral health care facilities. Despite seeing an uptrend, growth in patient volumes in the behavioral health care segment was partly offset by the shortage of nurses and other medical personnel.
The Zacks Consensus Estimate for fourth-quarter earnings per share of $2.96 has witnessed no movement in the past week. The estimate indicates a 0.3% increase from the year-ago quarter’s reported earnings of $2.95 per share.
Both the Zacks Consensus Estimate and our estimate for revenues are pegged at $3.4 billion, suggesting a rise of 3.9% from the year-ago quarter’s reported figure.
Universal Health’s earnings beat estimates in three of the trailing four quarters and missed on the other occasion, the average surprise being 0.7%. This is depicted in the graph below.
Universal Health Services, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for Acute Care Hospital Services segment’s net revenues is pegged at $1.9 billion, indicating an improvement of 4.1% from the prior-year quarter’s reported figure, while our estimate suggests a 3.2% increase.
The consensus mark for the Behavioral Health Care Services segment’s net revenues is pegged at $1.5 billion, suggesting 2.3% growth from the year-ago quarter’s reported figure, while our estimate suggests a 3.7% increase.
Revenues of Universal Health are likely to have gained on strong contributions from the Acute Care Hospital Services and Behavioral Health Care Services segments. Both segments are likely to have benefited from its continuous expansion initiatives.
The Zacks Consensus Estimate for same facility adjusted admissions in acute care hospitals in the fourth quarter hints at an increase of 2.7% from the prior-year quarter’s reported level, while our estimate suggests 1.8% growth.
However, the bottom line of Universal Health is expected to have taken a hit from elevated labor costs. Both the Zacks Consensus Estimate and our estimate for operating income from Acute Care Hospital Services indicate a 27% year-over-year decline.
Higher operating and supplies expenses are expected to have affected margins in the fourth quarter for Universal Health, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Universal Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. The Most Accurate Estimate is pegged at $2.96 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Universal Health currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Universal Health, here are some companies in the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. VIR beat earnings estimates in three of the past four quarters and missed once.
SI-BONE, Inc. (SIBN - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #3.
The Zacks Consensus Estimate for SI-BONE’s bottom line for the to-be-reported quarter indicates a 2.3% improvement from a year ago. The consensus mark for revenues suggests a 26% year-over-year increase.
Merus N.V. (MRUS - Free Report) has an Earnings ESP of +28.91% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Merus’ bottom line for the to-be-reported quarter has been unchanged over the past week. MRUS beat earnings estimates in all the past four quarters, with an average of 42%.
Image: Bigstock
Universal Health (UHS) to Post Q4 Earnings: What to Expect
Universal Health Services, Inc. (UHS - Free Report) is set to report its fourth-quarter 2022 results on Feb 27, after the closing bell.
In the last reported quarter, the hospital operator reported adjusted earnings per share of $2.54, beating the Zacks Consensus Estimate by 5.8% due to higher patient admissions at its acute care and behavioral health care facilities. Despite seeing an uptrend, growth in patient volumes in the behavioral health care segment was partly offset by the shortage of nurses and other medical personnel.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share of $2.96 has witnessed no movement in the past week. The estimate indicates a 0.3% increase from the year-ago quarter’s reported earnings of $2.95 per share.
Both the Zacks Consensus Estimate and our estimate for revenues are pegged at $3.4 billion, suggesting a rise of 3.9% from the year-ago quarter’s reported figure.
Universal Health’s earnings beat estimates in three of the trailing four quarters and missed on the other occasion, the average surprise being 0.7%. This is depicted in the graph below.
Universal Health Services, Inc. Price and EPS Surprise
Universal Health Services, Inc. price-eps-surprise | Universal Health Services, Inc. Quote
Factors to Note
The Zacks Consensus Estimate for Acute Care Hospital Services segment’s net revenues is pegged at $1.9 billion, indicating an improvement of 4.1% from the prior-year quarter’s reported figure, while our estimate suggests a 3.2% increase.
The consensus mark for the Behavioral Health Care Services segment’s net revenues is pegged at $1.5 billion, suggesting 2.3% growth from the year-ago quarter’s reported figure, while our estimate suggests a 3.7% increase.
Revenues of Universal Health are likely to have gained on strong contributions from the Acute Care Hospital Services and Behavioral Health Care Services segments. Both segments are likely to have benefited from its continuous expansion initiatives.
The Zacks Consensus Estimate for same facility adjusted admissions in acute care hospitals in the fourth quarter hints at an increase of 2.7% from the prior-year quarter’s reported level, while our estimate suggests 1.8% growth.
However, the bottom line of Universal Health is expected to have taken a hit from elevated labor costs. Both the Zacks Consensus Estimate and our estimate for operating income from Acute Care Hospital Services indicate a 27% year-over-year decline.
Higher operating and supplies expenses are expected to have affected margins in the fourth quarter for Universal Health, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Universal Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. The Most Accurate Estimate is pegged at $2.96 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Universal Health currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Universal Health, here are some companies in the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +338.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. VIR beat earnings estimates in three of the past four quarters and missed once.
SI-BONE, Inc. (SIBN - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #3.
The Zacks Consensus Estimate for SI-BONE’s bottom line for the to-be-reported quarter indicates a 2.3% improvement from a year ago. The consensus mark for revenues suggests a 26% year-over-year increase.
Merus N.V. (MRUS - Free Report) has an Earnings ESP of +28.91% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Merus’ bottom line for the to-be-reported quarter has been unchanged over the past week. MRUS beat earnings estimates in all the past four quarters, with an average of 42%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.