(RTTNews) - Hospital operator Universal Health Services, Inc. (UHS: News ) said Thursday after the markets closed that its third quarter profit rose 38% from last year, helped by higher revenue and improved operating margin. The company's quarterly earnings per share also breezed past Wall Street expectations. At the same time, the company raised its earnings guidance for the full year.

The company reported net income for the third quarter of $51.1 million or $1.03 per share, compared to $37.0 million or $0.73 per share for the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.88 per share for the third quarter.

Net revenues for the third quarter increased 4% to $1.30 billion from $1.24 billion in the same quarter last year. Fifteen analysts had a consensus revenue estimate of $0.88 per share for the third quarter.

At the company's acute care hospitals, inpatient admissions on a same facility basis increased 0.5%, while patient days decreased 2.2% in the third quarter. Third quarter net revenues at these facilities increased 5.3% from last year. On a same facility basis, operating margin at the company's acute care hospitals increased to 13.0% in the third quarter from 11.6% a year earlier.

At the company's behavioral health care facilities, inpatient admissions on a same facility basis increased 2.1% and patient days increased 1.4% in the third quarter. Third quarter net revenues at these facilities increased 3.6% from last year. On a same facility basis, operating margin at the company's behavioral health care facilities increased to 25.2% in the third quarter from 23.5% in the third quarter of last year.
For the first nine months, the company reported net income of $199.5 million or $4.04 per share, compared to $152.9 million or $2.99 per share for the same period last year.

Excluding items, adjusted net income for the 2009 nine-month period was $189.7 million or $3.84 per share.

Net revenues for the nine-month period increased 3% to $3.91 billion from $3.79 billion in the prior year period.

Looking forward, the company raised its full year 2009 guidance for earnings from continuing operations to a range of $4.65 to $4.80 per share from its prior guidance of $4.40 to $4.55 per share. The latest guidance range include net favorable impact of $0.20 per share resulting from items consisting of the favorable impact resulting from the reduction to the company's professional and general liability self-insurance reserves and the unfavorable impact resulting from the discrete tax item.

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