NYSE$UHS

Universal Health Services Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

UHS's net revenues increased and net income decreased during the fourth quarter of 2022.

Universal Health Services, Inc. reported a 5.2% increase in net revenues to $3.447 billion for the fourth quarter of 2022, compared to $3.275 billion in the fourth quarter of 2021. However, net income attributable to UHS decreased to $174.8 million, or $2.43 per diluted share, from $239.1 million, or $3.00 per diluted share, in the same period of the previous year. Adjusted net income attributable to UHS was $217.1 million, or $3.02 per diluted share, compared to $235.1 million, or $2.95 per diluted share, for the fourth quarter of 2021.

  • Net revenues increased by 5.2% to $3.447 billion during Q4 2022.
  • Net income attributable to UHS was $174.8 million, or $2.43 per diluted share, during Q4 2022.
  • Adjusted net income attributable to UHS was $217.1 million, or $3.02 per diluted share, during Q4 2022.
  • EBITDA net of NCI was $419.0 million during Q4 2022, as compared to $464.5 million during Q4 2021.

Headline financials

Total Revenue

$3.45B

Previous: $3.28B+5.3%
EPS (adj)

$3.02

Previous: $2.95+2.4%
Avg Licensed Beds

7.0K

Previous: 6.7K+5.0%
Avg Available Beds

6.8K

Previous: 6.5K+5.1%
Patient Days

401.4K

Previous: 397.5K+1.0%
Avg Daily Census

4.4K

Previous: 4.3K+1.0%
Occupancy Licensed Beds

62.4%

Previous: 64.9%-3.9%
Occupancy Available Beds

64.0%

Previous: 66.7%-4.0%
Admissions

81.3K

Previous: 77.4K+5.1%
Length of Stay

4.9

Previous: 5.1-3.9%
BH Avg Licensed Beds

24.2K

Previous: 24.2K+0.3%
BH Avg Available Beds

24.1K

Previous: 24.1K+0.3%
BH Patient Days

1.6M

Previous: 1.5M+2.2%
BH Avg Daily Census

17.0K

Previous: 16.6K+2.2%
BH Occupancy Licensed

70.0%

Previous: 68.7%+1.9%
BH Occupancy Available

70.3%

Previous: 69.0%+1.9%
BH Admissions

112.3K

Previous: 111.1K+1.0%
BH Length of Stay

13.9

Previous: 13.7+1.5%
Capital Expenditures

$164M

Previous: $190M-13.3%
Free Cash Flow

$133M

Previous: $132M+0.4%
Net Income

$170M

Previous: $239M-28.8%
Operating Income

$261M

Previous: $314M-16.7%
Gross Profit

$3.45B

Previous: $3.28B+5.2%
Cash & Equivalents

$103M

Previous: $115M-10.8%
Total Assets

$13.5B

Previous: $13.1B+3.1%
Stock-Based Comp

$22.6M

Previous: $18.1M+24.8%

Revenue & EPS history

UHS · Revenue · Quarterly

$3.45B

Q4 2022+5.3%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

UHS · $3.43B total across 2 segments · Q4 2022

  • Acute Care Services
    $1.94B+5.6%
  • Behavioral Health Services
    $1.49B+4.6%

Forward guidance

UHS projects net revenues between $14.044 billion and $14.314 billion and Adjusted EPS-diluted between $9.50 and $10.50 per share for the year ending December 31, 2023. The adjusted EBITDA net of NCI is expected to be between $1.662 billion and $1.753 billion.

Tailwinds

  • Net revenues are estimated to be approximately $14.044 billion to $14.314 billion representing an increase of approximately 4.8% to 6.8% over our 2022 net revenues of approximately $13.399 billion.
  • Adjusted EBITDA net of NCI is estimated to be approximately $1.662 billion to $1.753 billion, as compared to our 2022 Adjusted EBITDA net of NCI of $1.662 billion.
  • Adjusted EPS-diluted range is estimated to be $9.50 per diluted share to $10.50 per diluted share, as compared to our adjusted net income attributable to UHS of $9.88 per diluted share for the year ended December 31, 2022, as calculated on the attached Supplemental Schedule.

Headwinds

  • The 2023 forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities.
  • Our projected interest expense during 2023 is estimated to increase by approximately $71 million, or 56%, over the interest expense incurred during 2022.
  • The increase is due primarily to increases in our projected average cost of borrowings, and aggregate average borrowings outstanding, pursuant to our revolving credit and tranche A term loan facilities.

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 Q4 2022

Historical avgQ4 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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