CYH - Universal Health Services at an eight-month low after earnings missed expectations

Recording the biggest one-day loss since February, the shares of Universal Health Services (UHS -4.7%) have approached an eight-month low after the company fell short of analyst expectations with Q3 2021 earnings. The net income attributed to the company dropped ~9.5% YoY to $218.4M on a reported basis despite ~13% and ~2% YoY increase in net revenues generated from the acute care services and Behavioral Health Care Services during the quarter. “The developments related to the COVID-19 pandemic could materially affect our financial performance during the remainder of 2021 and into 2022,” the company wrote in its earnings release. Commenting on the results, UBS analyst Andrew Mok argued: “Elevated labor costs pressured both segments, but had a much larger impact on behavioral results.” “Expect the stock to trade on the quarter’s results, which disappoint against even bearish expectations,” Mok noted with a sell rating on the stock. Other healthcare providers

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Universal Health Services at an eight-month low after earnings missed expectations