NYSE$UHS

Universal Health Services Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

UHS's financial performance declined in Q3 2022, with decreased net income and earnings per share compared to Q3 2021.

Universal Health Services, Inc. reported a decrease in net income attributable to UHS to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022, compared to $218.4 million, or $2.60 per diluted share, during the third quarter of 2021. Net revenues increased by 5.7% to $3.336 billion during the third quarter of 2022 as compared to $3.156 billion during the third quarter of 2021.

  • Net income attributable to UHS decreased to $182.8 million, or $2.50 per diluted share, compared to $218.4 million, or $2.60 per diluted share in Q3 2021.
  • Adjusted net income attributable to UHS decreased to $185.8 million, or $2.54 per diluted share, compared to $224.1 million, or $2.67 per diluted share in Q3 2021.
  • Net revenues increased by 5.7% to $3.336 billion compared to $3.156 billion in Q3 2021.
  • EBITDA net of NCI was $421.7 million, compared to $441.5 million in Q3 2021.

Headline financials

Total Revenue

$3.34B

Previous: $3.16B+5.7%
EPS (adj)

$2.54

Previous: $2.67-4.9%
Avg Licensed Beds

7.0K

Previous: 6.6K+6.1%
Avg Available Beds

6.8K

Previous: 6.4K+6.3%
Patient Days

386.3K

Previous: 416.4K-7.2%
Avg Daily Census

4.2K

Previous: 4.5K-7.2%
Occupancy Licensed Beds

60.1%

Previous: 0.7%+8635.5%
Occupancy Available Beds

61.7%

Previous: 0.7%+8639.4%
Admissions

78.2K

Previous: 78.8K-0.7%
Length of Stay

4.9

Previous: 5.3-7.5%
BH Avg Licensed Beds

24.2K

Previous: 24.2K+0.1%
BH Avg Available Beds

24.1K

Previous: 24.1K+0.2%
BH Patient Days

1.6M

Previous: 1.5M+3.3%
BH Avg Daily Census

17.3K

Previous: 16.7K+3.3%
BH Occupancy Licensed

71.3%

Previous: 0.7%+10218.4%
BH Occupancy Available

71.6%

Previous: 0.7%+10217.0%
BH Admissions

117.9K

Previous: 113.4K+3.9%
BH Length of Stay

13.4

Previous: 13.4+0.0%
Capital Expenditures

-$570M

Previous: -$666M+14.5%
Free Cash Flow

-$387M

Previous: -$448M+13.6%
Net Income

$183M

Previous: $218M-16.3%
Operating Income

$276M

Previous: $315M-12.4%
Gross Profit

$3.34B

Previous: $3.16B+5.7%
Cash & Equivalents

$74.6M

Previous: $190M-60.7%
Total Assets

$13.4B

Previous: $12.8B+4.1%
Stock-Based Comp

$21.1M

Previous: $18.5M+14.0%

Revenue & EPS history

UHS · Revenue · Quarterly

$3.34B

Q3 2022+5.7%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

UHS · $3.35B total across 2 segments · Q3 2022

  • Acute Care Services
    $1.92B+5.4%
  • Behavioral Health Services
    $1.43B+8.0%

Forward guidance

Revised operating results forecast for the balance of 2022 assumed that staffing vacancies and the corresponding premium pay expenditures continue to sequentially decline in the second half of the year and that non-COVID patient volumes will incrementally improve, although both at a slower pace than our original forecast anticipated.

Tailwinds

  • Continuing recruitment and retention initiatives
  • Changes to historical patient care models
  • Other cost cutting measures
  • Aggressive contractual negotiations
  • Renegotiations with managed care payers

Headwinds

  • Potential impact on future COVID-19 patient volumes resulting from new variants of the virus
  • The length of time and severity of the spread of the pandemic
  • Declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions
  • Potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients
  • Potential increases to expenses and other costs related to staffing, supply chain, construction and medical equipment costs and other expenditures resulting from inflation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.7%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+17.5%

Q3 2022

Best reaction

-13.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.5%-7.0%-16.4%
Q4 2025-5.5%-1.0%-9.9%
Q3 2025+2.5%+1.4%+14.1%
Q2 2025-0.2%+3.3%+7.3%
Q1 2025-0.6%+3.4%+10.5%
Q4 2024+3.3%-3.8%+3.4%
Q3 2024-13.4%-12.1%-15.5%
Q2 2024+10.6%+17.3%+25.8%
Q1 2024+0.1%+2.6%+6.9%
Q4 2023-1.6%+4.1%+11.0%
Q3 2023-0.2%-0.6%+11.4%
Q2 2023-4.6%-6.5%-12.3%
Q1 2023+1.5%+6.9%-9.3%
Q4 2022-9.1%-13.5%-15.5%
Q3 2022+17.5%+25.8%+39.3%
Q2 2022-1.5%+1.3%-5.7%
Q1 2022-5.7%-7.8%-8.1%
Q4 2021+8.6%+8.7%+11.1%
Q3 2021-7.0%-8.5%-5.0%
Q2 2021+4.2%+5.1%+1.6%
Q1 2021+0.3%+2.0%+10.1%
Q4 2020-9.1%-6.2%-2.0%
Q3 2020+3.0%+11.1%+24.2%
Q2 2020+0.9%+1.7%+0.2%
Q1 2020+3.7%-2.5%+8.6%
Q4 2019-5.3%-2.7%-34.3%
Q3 2019-4.6%-4.0%-3.6%
Q2 2019+10.9%+11.6%+4.7%
Q1 2019-0.8%-2.6%-5.5%
Q4 2018+3.9%+2.7%+0.1%
Q3 2018-5.3%-1.0%+8.0%
Q2 2018+9.3%+9.3%+12.0%
Q1 2018-4.6%-5.2%-3.2%
Q4 2017-1.3%+5.3%+0.7%
Q3 2017-6.9%-8.3%-9.9%
Q2 2017-9.2%-10.3%-12.6%
Q1 2017-2.0%-0.1%-3.0%
Q4 2016-0.9%-0.8%-0.8%
Q3 2016+0.6%-0.7%+1.3%
Q2 2016-4.4%-5.2%-12.1%
Q1 2016+2.1%
Q4 2015+2.4%
Q3 2015+2.4%
Q2 2015+2.1%
Q1 2015-0.7%
Q4 2014+3.8%
Q3 2014-1.0%
Q2 2014+6.8%
Q1 2014+8.3%
Q4 2013-2.6%
Q3 2013+2.6%
Q2 2013+3.3%
Q1 2013+3.3%
Q4 2012-0.0%
Q3 2012-3.2%
Q2 2012+4.8%
Q1 2012-1.7%
Q2 2011+2.0%
Q4 2011+2.0%
Q3 2011+3.8%
Q1 2010+3.8%
Q4 2010+3.8%
Q1 2011+3.8%
Q2 2010+5.0%
Q3 2009+0.0%
Q3 2010+0.0%
Q4 2009-0.3%
Q2 2009-0.3%
Q4 2008-0.3%

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