Universal Health Services
The 10-second takeaway
For the quarter ended March 31 (Q1), Universal Health Services beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins dropped, operating margins were steady, net margins improved.
Universal Health Services chalked up revenue of $1.98 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $1.93 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $1.91 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 $1.13. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $1.31 for Q1 were 14% higher than the prior-year quarter's $1.15 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 44.4%, 50 basis points worse than the prior-year quarter. Operating margin was 13.6%, about the same as the prior-year quarter. Net margin was 6.5%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.93 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $7.62 billion. The average EPS estimate is $4.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 111 members out of 121 rating the stock outperform, and 11 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Universal Health Services a green thumbs-up, and four 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 $52.37.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.