Universal Health Services
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Universal Health Services met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Gross margins grew, operating margins were steady, net margins contracted.
Universal Health Services tallied revenue of $1.87 billion. The eight analysts polled by S&P Capital IQ expected to see revenue of $1.89 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $1.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.91. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.00 per share. GAAP EPS of $0.74 for Q3 were 14% lower than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.9%, 160 basis points better than the prior-year quarter. Operating margin was 10.6%, about the same as the prior-year quarter. Net margin was 3.8%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.78 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $7.12 billion. The average EPS estimate is $4.23.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 129 rating the stock outperform, and nine members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Universal Health Services a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Health Services is outperform, with an average price target of $50.86.
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