UHS Posts Modest Gains, Improves Revenues 2.6%

The hospital management company reported another strong quarterly performance in its earnings report, aided by strong net incomes and net revenues.

Universal Health Services, Inc. (UHS) posted improved performances in net income and net revenues compared to this time last year, according to its Q2 earnings report released Wednesday afternoon.

UHS' net revenues totalled $2.68 billion during Q2, an increase of 2.6% year-over-year, while net income reached $226.1 million, up from $185.4 million during Q2 2017. Additionally, UHS' GAAP-adjusted net income was $233.3 million, eclipsing the $188.1 million in adjusted net income from Q2 2017.

The hospital management company from King of Prussia, Pennsylvania made the announcement after markets closed Wednesday afternoon but saw its stock rise by nearly 2.4% during early trading Thursday morning.

Related: Median UHS Employee Earned 0.18% As Much As CEO Alan Miller

Below are highlights from UHS' Q2 earnings report: 

• The company saw an increase in the market value of shares classified for sale totalled $8 million in pre-tax unrealized gains. 
• However, UHS also registered a net unfavorable after-tax impact of $7.3 million that resulted from a pre-tax increase in the reserve established in coordination with the Department of Justice (DOJ).
• This reserve, totalling $22 million, was created as the DOJ investigates UHS' behavioral healthcare facilities. 

Additional information is available in UHS' filing with the Securities and Exchange Commission.