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Market Overview

Preview: Universal Health Services's Earnings


Universal Health Services (NYSE:UHS) unveils its next round of earnings this Thursday, February 25. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Universal Health Services analysts model for earnings of $2.78 per share on sales of $2.99 billion. Universal Health Services reported a per-share profit of $2.79 when it published results during the same quarter last year. Sales in that period totaled $2.90 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 0.36%. Sales would be up 3.25% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.94 0.74 2.55 2.57
EPS Actual 2.88 2.93 1.73 2.79
Revenue Estimate 2.78 B 2.45 B 2.92 B 2.87 B
Revenue Actual 2.91 B 2.73 B 2.83 B 2.90 B

Stock Performance

Shares of Universal Health Services were trading at $133.79 as of February 23. Over the last 52-week period, shares are up 6.29%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Universal Health Services is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings