Benzinga | Jul 23, 2021 10:39AM EDT

Earnings Outlook For Universal Health Services

On Monday, July 26, Universal Health Services (NYSE:UHS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, 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

Wall Street expects EPS of $2.68 and sales around $3.01 billion. In the same quarter last year, Universal Health Services reported EPS of $2.93 on revenue of $2.73 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.

The Wall Street consensus estimate for earnings would represent a 8.53% decrease for the company. Sales would be up 10.26% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 2.27 2.78 1.94 0.74EPS Actual 2.44 3.59 2.88 2.93Revenue Estimate 2.96 B 2.99 B 2.78 B 2.45 BRevenue Actual 3.01 B 3.09 B 2.91 B 2.73 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 38.45%. Given that these returns are generally positive, long-term shareholders can 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.