© Reuters. Universal Health Shares Drop 10% on Reported Q1 Earnings Miss
Universal Health (NYSE:) shares dropped around 10% after-hours following the company’s reported Q1 results, with EPS of $2.15 coming in below the Street estimate of $2.46. Revenue grew 9.3% year-over-year to $3.29 billion, compared to the Street estimate of $3.21 billion.
The quarterly results were unfavorably impacted by the ongoing COVID-related uncertainties, as well as higher-than-anticipated labor costs due to a nationwide shortage of nurses and other clinical staff and support personnel.
On February 24, 2022, the company’s Board of Directors announced a $1.4 billion increase to its stock repurchase authorization.
The company reiterated its full 2022-year outlook provided on Feb 24, however noting that estimate reductions may be possible at a future date in case the trend of uncertainties related to the COVID-19 pandemic, as well as the healthcare staffing shortage that negatively affected the Q1 results won’t improve.
Shares of Universal Health were up 7% year-today-date before the after-hours drop.
By Davit Kirakosyan
Be the first to comment