Key Highlights

  • Consensus EPS of 5.19 compares with diluted EPS of 5.98 for the second quarter, against 5.43 last year.
  • Consensus revenue of USD 4.71 billion compares with revenue of USD 4,638,012 thousand reported for the second quarter.
  • Same facility salaries, wages and benefits rose USD 53 million, or 5.7%, and other operating expenses rose USD 107 million.
  • Operating expenses at the commercial health insurer rose USD 53 million, or 30.6%, on an increase in membership.

Universal Health Services (NYSE:UHS) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 5.19 on revenue of USD 4.71 billion, and the company has a market capitalization of USD 10.94 billion.

Universal Health Services operates hospitals and also owns a commercial health insurer. In the second quarter, it reported revenue of USD 4,638,012 thousand against USD 4,283,816 thousand and net income of USD 358,447 thousand against USD 353,218 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 5.19 is below the diluted EPS of 5.98 reported for the second quarter, which compared with 5.43 a year earlier. The revenue estimate of USD 4.71 billion is above the USD 4,638,012 thousand reported.

Operating income was USD 516,675 thousand against USD 500,270 thousand, and income before income taxes was USD 479,126 thousand against USD 473,385 thousand. Basic EPS was 6.01 against 5.49.

Expense Lines in the Filing

Operating expenses were USD 4,121,337 thousand against USD 3,783,546 thousand. On a same facility basis, salaries, wages and benefits expense rose USD 53 million, or 5.7%, which the filing ties in part to increased patient volumes. As a percentage of net revenues, it was 39.5%.

Other operating expenses rose USD 107 million, or 15.9%, and were 31.1% of net revenues against 29.0%. Operating expenses at the commercial health insurer, consisting primarily of medical costs, rose USD 53 million, or 30.6%, due to an increase in membership.

Interest expense was USD 39,912 thousand against USD 35,364 thousand.

Salaries, wages and benefits were USD 2,140,309 thousand against USD 2,014,951 thousand, and other operating expenses were USD 1,351,958 thousand against USD 1,162,566 thousand. Supplies expense was USD 423,257 thousand against USD 418,785 thousand.

Depreciation and amortization was USD 167,338 thousand against USD 152,004 thousand, and lease and rental expense was USD 38,475 thousand against USD 35,240 thousand.

Earnings Detail and Balance

Net income including noncontrolling interests was USD 364,590 thousand against USD 362,612 thousand, and net income attributable to the company was USD 358,447 thousand against USD 353,218 thousand.

The estimates table lists a market capitalization of USD 10.94 billion. Cash and cash equivalents were USD 138,800 thousand, and accounts receivable, net, were USD 2,801,108 thousand against USD 2,602,434 thousand at the prior year-end. Supplies inventory was USD 234,094 thousand against USD 232,110 thousand, and total current assets were USD 3,679,325 thousand against USD 3,407,915 thousand, and property and equipment was USD 13,830,293 thousand against USD 13,489,811 thousand.

Figures to Follow in the Release

Diluted EPS against 5.19 and revenue against USD 4.71 billion are the headline comparisons. Other markers are salaries, wages and benefits as a percentage of net revenues, other operating expenses and insurer membership.