Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Prudential Downgrades Universal Health Services


Universal Health Services (UHS) posted 64 cents, vs. 76 cents, second-quarter adjusted earnings per share. Prudential cut its rating to underweight from neutral.

Analyst David Shove says 64 cents second-quarter adjusted EPS (which excludes a gain from the sale of France operations) was 11 cents below consensus and 8 cents below his estimate due to a resurgence of old problems. He notes in the second quarter McAllen Texas market admissions weakened once more, while an uninsured admissions rise prompted a sharp increase in bad debt reserves; hence, acute care operations profitability fell sharply.

Shove says that without some relief in the Texas market and a better bad debt outlook, the company's EPS power is at risk to further deterioration.

He cut his $3.17 2005 EPS estimate to $3.00, and $3.47 2006 forecast to $3.43. He also lowered his $50 price target to $45.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus