The stock market has seen substantial declines in recent weeks, and many investors thought they were due for a bounce. Things looked ugly early in the session on Monday, but by the close, the Dow Jones Industrial Average (^DJI 0.56%), the S&P 500 (^GSPC -0.88%), and the Nasdaq Composite (^IXIC -2.05%) all managed to claw back some of their lost ground from earlier in April.
|
Index |
Daily Percentage Change |
Daily Point Change |
|---|---|---|
|
Dow |
+0.70% |
+238 |
|
S&P 500 |
+0.57% |
+24 |
|
Nasdaq |
+1.29% |
+166 |
Data source: Yahoo! Finance.
Earnings season is in full force right now, and after-hours trading featured a couple of big movers. The news was generally good for Cadence Design Systems (CDNS -1.98%), but Universal Health Services (UHS 2.49%) suffered a significant decline in late-afternoon trading. Below, we'll look more closely at both stocks and what prompted their big moves.
Maintaining a positive Cadence
Shares of Cadence Design Systems were up nearly 6% after hours on Monday. The electronic-systems design specialist reported first-quarter results that made investors optimistic about the company's future.
The numbers from Cadence were generally positive and kept up momentum from previous quarters. Revenue was higher by 23% for the first quarter, coming in at $902 million. Adjusted net income improved by 40% year over year to $324 million, and that worked out to adjusted earnings of $1.17 per share, which made shareholders pleased with Cadence's overall performance.
Cadence believes that it has long-term trends helping to push its business forward, and those trends should persist for the long haul. As CEO Anirudh Devgan noted, Cadence's innovative solutions are appealing to an ever-widening customer base, and that's helping to promote sales and profit growth more broadly.
Best of all, Cadence expects the rest of 2022 to go well. With projected revenue of between $3.395 billion and $3.435 billion and adjusted earnings in a range between $3.89 and $3.97 per share, Cadence appears to be firing on all cylinders and taking full advantage of the demand among its customers to stay on the cutting edge of technological innovation.
Image source: Getty Images.
UHS looks less healthy
On the other hand, shares of Universal Health Services were down almost 11% in after-hours trading. Investors didn't like what they saw in the hospital and healthcare services provider's first-quarter financial report.
The company's results were mixed. Revenue was higher by more than 9% to $3.29 billion. However, net income came in at just $154 million, down 26% year over year from the first quarter of 2021. Adjusted earnings saw similar declines, coming in at $2.15 per share.
Operationally, Universal Health Services saw varying performance from different segments. Acute-care hospital admissions were up nearly 6%, with patient days rising 5.5% year over year and net revenue per admission climbing more than 3%. However, behavior-health facility admissions were down nearly 2%, and adjusted patient days eased lower, as well. Despite ongoing vaccination efforts, the COVID-19 pandemic has continued to have a material impact on operations, along with the nationwide shortage of nurses and other staff and support personnel.
Moreover, the company warned that it might have to revise its 2022 guidance lower if conditions in the labor market don't improve. That didn't make investors confident about the near-term future of Universal Health Services, even if its longer-term prospects still appear to be sound.