Universal Health Services Inc.'s (UHS) second-quarter earnings
rose 3.8% as the company continued to benefit from its
behavioral-health hospitals' contributions, though it saw weakness
in its acute-care facilities.
But the company lowered its adjusted earnings guidance for the
year, citing the sluggish recovery, and now expects profit of $4.25
to $4.35 a share. It previously forecast $4.33 to $4.48 a
share.
Earnings have climbed for more than a year for Universal Health,
which operates medical, surgical and behavioral facilities across
the U.S., as its top line has benefited from strong growth at
behavioral-health facilities.
The company last month said it plans to pay $500 million in cash
to acquire privately held behavioral health-care provider Ascend
Health Corp., a purchase that it expects to immediately boost
earnings. Ascend operates psychiatric in-patient facilities in a
handful of states, with most based in Texas, a state that already
has a strong UHS presence.
Universal Health posted a profit of $107.6 million, or $1.10 a
share, up from $103.6 million, or $1.04 a share, a year earlier.
Revenue grew 0.9% to $1.73 billion.
Analysts polled by Thomson Reuters expected a $1.11 per-share
profit on $1.86 billion of revenue.
Operating margin narrowed to 13.3% from 13.5%.
Revenue from acute-care hospitals fell 2.2% on a same-facility
basis as adjusted admissions dropped 1.3%. Revenue per adjusted
admission fell 0.9%. Behavioral health hospitals' same-facility
revenue rose 4.1%.
Shares closed Thursday at $38.32 and were down 4% on light
after-hours trading. The stock is down 1.4% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires