Universal Health Services Inc. (NYSE:UHS) reported fourth-quarter 2017 adjusted earnings of $2.00 per share that surpassed the Zacks Consensus Estimate of $1.84 by 8.7%. Earnings also grew 11% year over year.
Net revenues increased 6.7% year over year to $2.64 billion in the fourth quarter, beating the Zacks Consensus Estimate of $2.63 billion.
Total operating expenses of $2.3 billion at the end of the fourth quarter increased 6.6% year over year.
Full-Year Update
For 2017, the company reported net income of $7.81 per share, up 9.3% year over year.
Universal Health’s net revenues came in at $10.41 billion, up 6.6% from 2016.
Total operating expenses were $9.1 billion, up 7.6% year over year.
Quarterly Segment Update
Acute Care Hospitals
Adjusted admissions and adjusted patient days increased 7.3% and 5.2%, respectively, from the prior-year quarter. Net revenues from acute care services climbed 6.5% in the fourth quarter.
Behavioral Hospitals
On a same facility basis, adjusted admissions increased 2.5% while adjusted patient days declined 0.7%, both on a year-over-year basis. Net revenues increased 1.6% during the quarter on a same facility basis.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. Price, Consensus and EPS Surprise | Universal Health Services, Inc. Quote
Financial Update
As of Dec 31, 2017, the company had cash and cash equivalents of nearly $74.4 million, up 120% from year-end 2016.
Total assets were $10.8 billion as of Dec 31, 2017, up 4.3% from year-end 2016.
The company managed to lower its debt burden, as evident from its long-term debt of $3.5 billion as of Dec 31, 2017, down 13% from year-end 2016.
For 2017, net cash provided by operating activities decreased 11.3% to $1.18 billion year over year.
Buyback Program
In November 2017, the board of directors authorized a $400 million increase in Universal Health’s stock repurchase program, which raised the aggregate authorization to $1.2 billion from $800 million approved during 2016 and 2014.
During the fourth quarter, the company repurchased nearly 1 million shares at an aggregate cost of $100.8 million.
In 2017, the company repurchased approximately 2.96 million shares at an aggregate cost of approximately $322.2 million.
2018 Guidance
The company expects adjusted earnings per share to be within $9.25 to $9.90.
Revenues are expected in the range of $10.923 billion to $11.063 billion.
Zacks Rank & Performance of Peers
Universal Health presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported their fourth-quarter earnings so far, Centene Corp. (NYSE:CNC) , Anthem Inc (NYSE:ANTM) and UnitedHealth Group Inc. (NYSE:UNH) beat their respective Zacks Consensus Estimate for earnings.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
Universal Health Services, Inc. (UHS): Free Stock Analysis Report
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