Universal Health warns of possible impact to annual results from Medicaid changes; Q3 revenue slightly beats
Universal Health warns of possible impact to annual results from Medicaid changes; Q3 revenue slightly beats
Overview
US hospital operator's Q3 revenue rose 5.3%, slightly beating analyst expectations
Q3 adjusted EPS fell year-over-year; no analyst consensus for EPS
Company repurchased 1.35 mln shares for $242.1 mln in Q3
Outlook
Company warns changes to Medicaid programs could materially impact 2026 results
Company expects new Medicaid eligibility rules to reduce revenue and increase uncompensated care
Company says higher interest rates could further impact future results and cash flow
Result Drivers
HIGHER ACUTE CARE VOLUMES - Co said increased adjusted admissions and patient days at acute care hospitals drove revenue growth
BEHAVIORAL HEALTH GROWTH - Co said higher admissions and patient days at behavioral health facilities contributed to revenue rise
LOWER ACUTE CARE REVENUE PER PATIENT - Co said net revenue per adjusted admission and patient day fell at acute care hospitals
Company press release: ID:nGNXmQgRQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $4.73 bln | $4.71 bln (16 Analysts) |
Q3 EPS |
| $5.22 |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Universal Health Services, Inc. is $195.50, about 5.3% above its October 26 closing price of $185.71
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
Oct 27 - HCA signals flat 2027 earnings as Medicaid payments drop; shares slide
Oct 27 - Centene Q3 revenue tops estimates on Medicare growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)