Universal Health Services Beats on Both Top and Bottom Lines
Universal Health Services (NYS: UHS) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Universal Health Services beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share shrank.
Margins dropped across the board.
Universal Health Services chalked up revenue of $2.08 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $2.01 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.22. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.19 per share. Non-GAAP EPS of $1.22 for Q1 were 8.0% higher than the prior-year quarter's $1.13 per share. GAAP EPS of $1.21 for Q1 were 7.6% lower than the prior-year quarter's $1.31 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 39.6%, 30 basis points worse than the prior-year quarter. Operating margin was 13.3%, 170 basis points worse than the prior-year quarter. Net margin was 6.5%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $7.78 billion. The average EPS estimate is $4.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 118 members out of 127 rating the stock outperform, and nine members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Universal Health Services a green thumbs-up, and two 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 $67.84.
Is Universal Health Services the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Universal Health Services to My Watchlist.
The article Universal Health Services Beats on Both Top and Bottom Lines originally appeared on Fool.com.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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.