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Universal Health Services (UHS) Reports Q3: Everything You Need To Know Ahead Of Earnings

UHS Cover Image

Hospital management company Universal Health Services (NYSE: UHS) will be reporting results this Monday afternoon. Here’s what to look for.

Universal Health Services beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $4.28 billion, up 9.6% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ same-store sales estimates.

Is Universal Health Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Universal Health Services’s revenue to grow 10.3% year on year to $4.37 billion, in line with the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.93 per share.

Universal Health Services Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Health Services has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.

Looking at Universal Health Services’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Quest reported revenues up 13.2%, topping estimates by 3.3%. Quest traded down 4.9% following the results.

Read our full analysis of HCA Healthcare’s results here and Quest’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7.7% on average over the last month. Universal Health Services is up 4.6% during the same time and is heading into earnings with an average analyst price target of $225.06 (compared to the current share price of $210).

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