Universal Health (NYSE:) shares dropped around 10% after-hours following the company’s reported Q1 results, with EPS of $2.15 coming in below the Street estimate of $2.46. On a comparison to the $3.21 billion Street estimate, revenue grew 9.3% to $3.29 Billion.

The quarterly results were unfavorably impacted by the ongoing COVID-related uncertainties, as well as higher-than-anticipated labor costs due to a nationwide shortage of nurses and other clinical staff and support personnel.

On February 24, 2022, the company’s Board of Directors announced a $1.4 billion increase to its stock repurchase authorization.

The company reiterated its full 2022-year outlook provided on Feb 24, however noting that estimate reductions may be possible at a future date in case the trend of uncertainties related to the COVID-19 pandemic, as well as the healthcare staffing shortage that negatively affected the Q1 results won’t improve.

Universal Health shares were up by 7% in the year to date, before the post-hours drops.

By Davit Kirakosyan