Shares of Universal Health Services Inc. UHS, +1.08% tumbled 8.6% toward a two-year low in premarket trading Thursday, after the hospital and health care services company cut its earnings outlook, citing a “significant shortfall” in results during April and May. The company expects second-quarter adjusted earnings per share of $2.05 to $2.15, well below the FactSet consensus of $2.79. For 2022, Universal Health cut its guidance ranges for adjusted EPS to $9.60 from $10.40 from $11.90 to $12.90 and for revenue to $13.235 billion to $13.371 billion from $13.424 billion to $13.694 billion. “The lower than expected earnings projected for the second quarter of 2022 was due primarily to lower than expected patient volumes, revenues and income generated at our acute care hospitals,” the company said. “Although the decreased patient volumes at our acute care hospitals has relieved some of the staffing shortages and related cost escalations previously experienced at those facilities, recovery from the effects of the labor pressures has been occurring at a somewhat slower pace than expected.” The stock has lost 17.3% year to date through Wednesday, while the SPDR Health Care Select Sector ETF XLV, +0.87% has lost 8.8% and the S&P 500 SPX, -0.07% has dropped 19.9%.
