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What's in Store for Universal Health's (UHS) Q2 Earnings?
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Universal Health Services, Inc. (UHS - Free Report) is set to report second-quarter 2018 results on Jul 25 after market close. Last reported quarter, the company managed to deliver a negative earnings surprise of 5.41%.
Let’s see, how things are shaping up for this announcement.
The company has likely witnessed consistent solid performances by both its Acute Care and Behavioral Health segments. The upside is attributable to rising admissions, licensed beds and patient days.
The Zacks Consensus Estimate for total revenues in the second quarter is pegged at $2.7 billion, reflecting year-over-year growth of 4%. The consensus estimate for net revenues at Acute Care and Behavioral Health segments stands at $1.4 billion and $1.2 billion respectively, up 4.8% and 2.2% each, year over year.
The average number of licensed beds in the Acute Care hospitals as well as in the Behavioral Health centers has been steadily increasing since 2012. The consensus mark for Average Licensed Beds in Acute Care and Behavioral Health on same facility basis is pegged at respectively 6.4 billion and 23.2 billion, each up 8.5% and 6% year over year.
The increasing bed count is likely to drive admissions in both the segments in the to-be-reported quarter. Per our estimates, Admissions in Acute Care and Behavioral Health on same facility basis is 75.8 billion and 122.1 billion, up 6% and 2.7%, respectively, year over year.
Moreover, the company has might have retained its focus on enhancing shareholder value. It rewarded its shareholders of record on Jun 1, 2018 with a cash dividend of 10 cents on Jun 15, 2018.
However, high costs related to the company’s personnel General and Administrative are expected to affect its earnings in the second quarter.
What the Quantitative Model States
Our proven model does not conclusively show that Universal Health is likely to beat on earnings this quarter to be reported. This is because the stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you can see below.
Zacks ESP: Universal Health has an Earnings ESP of +0.73%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Universal Health Services, Inc. Price and EPS Surprise
Zacks Rank: Universal Health carries a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Therefore, this combination leaves surprise prediction inconclusive. We caution against the Sell-rated stocks (4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +288.23%. This #3 Ranked company is set to report second-quarter earnings on Jul 26.
Galmed Pharmaceuticals Ltd. (GLMD - Free Report) is set to report second-quarter 2018 earnings on Jul 30. The stock has an Earnings ESP of +11.59% and a Zacks Rank #2.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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What's in Store for Universal Health's (UHS) Q2 Earnings?
Universal Health Services, Inc. (UHS - Free Report) is set to report second-quarter 2018 results on Jul 25 after market close. Last reported quarter, the company managed to deliver a negative earnings surprise of 5.41%.
Let’s see, how things are shaping up for this announcement.
The company has likely witnessed consistent solid performances by both its Acute Care and Behavioral Health segments. The upside is attributable to rising admissions, licensed beds and patient days.
The Zacks Consensus Estimate for total revenues in the second quarter is pegged at $2.7 billion, reflecting year-over-year growth of 4%. The consensus estimate for net revenues at Acute Care and Behavioral Health segments stands at $1.4 billion and $1.2 billion respectively, up 4.8% and 2.2% each, year over year.
The average number of licensed beds in the Acute Care hospitals as well as in the Behavioral Health centers has been steadily increasing since 2012. The consensus mark for Average Licensed Beds in Acute Care and Behavioral Health on same facility basis is pegged at respectively 6.4 billion and 23.2 billion, each up 8.5% and 6% year over year.
The increasing bed count is likely to drive admissions in both the segments in the to-be-reported quarter. Per our estimates, Admissions in Acute Care and Behavioral Health on same facility basis is 75.8 billion and 122.1 billion, up 6% and 2.7%, respectively, year over year.
Moreover, the company has might have retained its focus on enhancing shareholder value. It rewarded its shareholders of record on Jun 1, 2018 with a cash dividend of 10 cents on Jun 15, 2018.
However, high costs related to the company’s personnel General and Administrative are expected to affect its earnings in the second quarter.
What the Quantitative Model States
Our proven model does not conclusively show that Universal Health is likely to beat on earnings this quarter to be reported. This is because the stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you can see below.
Zacks ESP: Universal Health has an Earnings ESP of +0.73%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Universal Health Services, Inc. Price and EPS Surprise
Universal Health Services, Inc. Price and EPS Surprise | Universal Health Services, Inc. Quote
Zacks Rank: Universal Health carries a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Therefore, this combination leaves surprise prediction inconclusive. We caution against the Sell-rated stocks (4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Align Technology, Inc. (ALGN - Free Report) is set to report second-quarter earnings on Jul 25. This #1 Ranked stock has an Earnings ESP of +3.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +288.23%. This #3 Ranked company is set to report second-quarter earnings on Jul 26.
Galmed Pharmaceuticals Ltd. (GLMD - Free Report) is set to report second-quarter 2018 earnings on Jul 30. The stock has an Earnings ESP of +11.59% and a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>