Universal Health Services Inc. (UHS) Monday said its first quarter profit rose 9.5% from the prior year helped by increased patient admission at its behavioral health facilities. Income from continuing operations improved 12.5% from the year ago quarter.
First quarter net income rose 9.5% to $67.54 million from $61.66 million in the prior-year quarter. On a per share basis, earnings rose 14% to $1.37 from $1.20 from the comparable quarter last year.
Income from continuing operations attributable to UHS was $67.54 million, up 12.5% from $60.05 million in the year-ago quarter. On a per share basis, earnings from continuing operations attributable to UHS increased 17% to $1.37 from $1.17 in the same quarter last year.
On average, fourteen analysts polled by Thomson Reuters expected earnings of $1.14 per share for the quarter. Analyst' estimate typically excludes one-time items.
Universal Health's revenues for the quarter improved 3% to $1.31 billion from $1.28 billion in the year-earlier quarter. The Street expected revenues of $1.35 billion for the quarter.
In the sequentially preceding fourth quarter, Universal Health Services' earnings increased to $46.5 million or $0.93 per share on revenues that increased 5% to $1.24 billion from the year-earlier quarter.
Among others in the industry, Community Health Systems, Inc. (CYH) reported a marginal year-over-year profit that declined to $58.92 million or $0.65 per share as revenues dropped 7.6% to $2.89 billion from the same quarter a year ago. Another peer, Tenet Healthcare Corp. (THC), reported preliminary profit for first quarter of $178 million or $0.37 per share, compared to a loss a year ago. Quarterly revenues for Tenet are forecast to increase 4.7% to $2.280 billion.
For the quarter under review, Universal Health Services said its inpatient admissions decreased 1.1% and patient days decreased 2.2%, while, on a same facility basis, net revenues improved 0.9% from the year-ago quarter. Operating margin at acute care hospitals was up at 17.5%, compared to 16.2% during the first quarter of 2008.
Meanwhile, inpatient admissions, on a same facility basis, at behavioral health facilities increased 1.1%, while patient days dropped 1.4%. Net revenues increased 2.8%, with a 4.8% increase in net revenues per adjusted patient day. Operating margin at behavioral health facilities was 25.0%, up from 23.7% in the first quarter of 2008.
Consolidated operating margin for the quarter was 15.6%, compared to 14.8% in the comparable quarter a year ago.
Operating charges for the quarter was $1.18 million, up from $1.15 million in the same quarter a year ago. Operating charges includes salaries, wages, supplies expenses, provision for doubtful accounts and other expenses.
On April 9, 2009, brokerage, Credit Suisse, upgraded UHS shares to 'Outperform' from 'Neutral', with a mean target of $45.82.
UHS is currently trading at $46.08, up $2.80 or 6.47%, on a volume of 1.95 million shares. In after-hours trading, the stock dropped $0.79 or 1.71%, to trade at $46.00. In the last 52-week period, the stock traded in the range of $30.43 to $69.25, on a three-month average volume of 0.88 million shares.
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