Universal Health falls after profit forecast cut
BUZZ-Universal Health falls after profit forecast cut
** Hospital operator Universal Health Services UHS.N down 3.9% to $153.10 in premarket trading
** Co on Monday lowered its full-year profit forecast to between $22.28 and $23.65 per share, from prior outlook of $22.64 to $24.52 per share
** Cited reimbursement changes tied to certain Medicaid supplemental payment programs
** The forecast cut comes as the expiration of enhanced Affordable Care Act subsidies leaves more patients uninsured, raising concerns about uncompensated-care costs for U.S. hospitals
** Co's adjusted profit came in at $5.98 per share in the second quarter, compared with analysts' average expectation of $5.96 per share
** Following the results, at least three brokerages cut price targets on the stock, according to data compiled by LSEG
** 9 of 22 brokerages rate the stock "buy" or higher, 12 "hold" and 1 "sell"; their median PT is $198.5 — LSEG-compiled data
** As of last close, stock down ~27% YTD
(Reporting by Kanishka Ajmera in Bengaluru)
((mail to: Kanishka.Ajmera@thomsonreuters.com))