(Reuters) – Hospital operator Universal Health Services reported on Thursday its third-quarter profit in line with Wall Street estimates, hurt by increased expenses, such as salaries and wages for its staff. Shares of the company fell nearly 8% to $207 after the bell. Expenses on salaries, wages and benefits rose 7% to $1.9 billion for […]
Health
Universal Health Services’ higher expenses weigh on third-quarter profit
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(Reuters) – Hospital operator Universal Health Services reported on Thursday its third-quarter profit in line with Wall Street estimates, hurt by increased expenses, such as salaries and wages for its staff.
Shares of the company fell nearly 8% to $207 after the bell.
Expenses on salaries, wages and benefits rose 7% to $1.9 billion for the third quarter and overall operating charges rose 9.2% to $3.6 billion.
Quarterly same facility adjusted admissions increased by 1.5% at its acute care hospitals, while same facility adjusted admissions were up 2.2% at the behavioral health care facilities, as more patients sought medical care that required hospital stay.
Hospital operators have been benefiting from an uptick in demand for medical care, as older adults are catching up on surgeries delayed during the pandemic.
The King of Prussia, Pennsylvania-based company posted an adjusted profit of $3.71 per share for the quarter ended Sept. 30, compared with analysts’ estimates of $3.70 per share, according to data compiled by LSEG.
Universal Health had previously forecast 2024 profit in the range of $15.40 to $16.20 per share and revenues of $15.57 billion to $15.75 billion.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Mohammed Safi Shamsi)