Universal Health Services Inc. UHS reported second-quarter 2018 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate by 3.3%. Moreover, the bottom line improved 27.3% year over year.

Net revenues increased 2.6% year over year to $2.68 billion. However, the top line lagged the Zacks Consensus Estimate by 1.3%.

Total operating expenses of $2.4 billion at the end of the second quarter rose 3.3% year over year, mainly due to escalating interest expenses.

Segment Update

Acute Care Hospitals:

Adjusted admissions and adjusted patient days increased 1.9% and 4.7%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 3.3% in the second quarter, majorly backed by rise in admissions and patient days.

Behavioral Hospitals:

On a same facility basis, adjusted admissions increased 1.2% while adjusted patient days declined 0.3%, both on a year-over-year basis. Net revenues grew 2.8% during the quarter under review on a same facility basis due to rise in segment admissions.

Financial Update

As of Jun 30, 2018, the company had cash and cash equivalents of nearly $76 million, up 3.3% from the level at year-end 2017.

Total assets were $11 billion as of Jun 30, 2018, up 2.9% from the tally as of Dec 31, 2017.

The company’s long-term debt came in at $3.8 billion, up 10.6% from the level at 2017 end.

For the first half of 2018, net cash provided by operating activities totaled $629 million, up 18% year over year.

Buyback Program

During the second quarter, the company repurchased 1.12 million shares worth $129.6 million.

Zacks Rank

Universal Health currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

UnitedHealth Group Incorporated’s UNH second-quarter bottom line beat estimates on the back of higher revenues and solid performances by both segments in the last reported quarter.

Centene Inc.’s CNC second-quarter earnings surpassed estimates, majorly driven by solid revenues and membership growth.

Anthem Inc. ANTM came up with an earnings beat in the second quarter, riding on a strong medical cost performance.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it’s predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks’ 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
Universal Health Services, Inc. (UHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research