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Labor Shortage Weighs On Universal Health Services Q2 Performance

In This Article:

  • Universal Health Services Inc (NYSE: UHS) reported Q2 revenue of $3.32 billion, +3.9% Y/Y, slightly above the consensus of $3.28 billion.

  • The company reported an adjusted EPS of $2.20, down from $3.76 a year ago and missing the consensus of $2.35, but higher than the management guidance of $2.05 - $2.15.

  • Acute care hospitals owned adjusted admissions decreased by 0.7%, and adjusted patient days increased by 1.8% Y/Y.

  • Net revenues generated from acute care services on the same facility basis increased by 3.3%.

  • In behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.1%, and adjusted patient days increased 0.7%.

  • Adjusted EBITDA reached $382.56 million, and the margin declined from 17.9% to 11.5%.

  • Universal Health Services continues to experience a shortage of nurses, other clinical staff, and support personnel at acute care and behavioral health care hospitals.

  • The company revised guidance assuming that staffing vacancies and the corresponding premium pay expenditures will continue declining in the year's second half.

  • It anticipates that non-COVID patient volumes will incrementally improve, although both at a slower pace than the original forecast.

  • Price Action: UHS shares closed 4.61% lower at $104.84 during the post-market session on Monday.

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