Universal Health Services Inc. UHS on Monday forecast full-year sales that were above analysts’ expectations, but profits that came up short. The company — whose facilities provide mental-health and substance abuse treatment, as well as emergency care services — said it expected 2023 sales of $14.04 billion to $14.31 billion, above FactSet estimates for $13.98 billion. The forecast for adjusted earnings per share of between $9.50 and $10.50 compared with FactSet forecasts for $10.80. Shares fell 3.9% after hours. For the fourth quarter, Universal Health reported net income of $170.4 million, or $2.43 a share, compared with $233.9 million, or $3 a share, in the same quarter in 2021. Revenue of $3.45 billion compared with $3.28 billion in the prior-year quarter. Adjusted for provisions on asset impairments, Universal Health Services earned $3.02 a share, compared with $2.95 in the prior-year quarter. Analysts polled by FactSet expected the company to report adjusted earnings per share of $2.96 on revenue of $3.39 billion. The company reported earnings as health facilities struggle to attract and retain staff. Mizuho analysts, in a note last month, said labor trends “appeared to stabilize sequentially, which we view as a positive given the elevated flu season.” Any executive commentary on those trends was likely to be a focus during UHS’s earnings call, set for Tuesday.
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