Universal Health Q4 Earnings Beat on Strong Adjusted Admissions

Universal Health Services, Inc. UHS reported fourth-quarter 2024 adjusted earnings per share (EPS) of $4.92, which beat the Zacks Consensus Estimate by 17.4%. The bottom line climbed 17.4% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Net revenues advanced 11.1% year over year to nearly $4.1 billion. The top line beat the consensus mark by 3%.The strong quarterly results of UHS were aided by continued growth in admissions at its acute care facilities and behavioral, resulting in substantial contributions from the segments. Higher same-facility-adjusted patient days also contributed positively to the outcomes. However, the upside was partly offset by higher expenses related to salaries, wages and benefits.Universal Health Services, Inc. Price, Consensus and EPS Surprise Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. QuoteUHS’ Quarterly Operational UpdateAdjusted EBITDA net of NCI was $614.6 million, which improved nearly 30% year over year and surpassed our estimate of $559.1 million.Total operating costs escalated 8% year over year to $3.6 billion due to higher salaries, wages and benefits, other operating expenses and supplies costs.UHS’ Segmental UpdateAcute Care Hospital ServicesAdjusted admissions (adjusted for outpatient activity) inched up 2.2% on a same-facility basis. Adjusted patient days grew 0.1% year over year. Net revenues stemming from Universal Health’s acute care services advanced 8.7% on a same-facility basis.Behavioral Health Care ServicesAdjusted admissions rose 2% on a same-facility basis in the quarter. Adjusted patient days increased 1.6% on a same-facility basis. Net revenues derived from the behavioral healthcare services of UHS climbed 11.1% on a same-facility basis.Financial Update of UHS (As of Dec. 31, 2024)Universal Health exited the fourth quarter with cash and cash equivalents of $126 million, which rose 5.5% from the 2023-end level. As part of its $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $1.17 billion at the fourth-quarter end.Total assets of $14.5 billion increased 3.6% from the figure at 2023-end. Long-term debt amounted to $4.5 billion, down 6.7% from the figure as of Dec. 31, 2023. Current maturities of long-term debt totaled $40.1 million.Total equity of $6.7 billion rose 8.9% from the 2023-end level. UHS generated cash flows from operations of $2.1 billion in 2024, which soared 63% from the prior-year period.UHS’ Share Repurchase UpdateUniversal Health bought back shares worth $249.6 million in the fourth quarter. The company had a leftover repurchase capacity of around $824.4 billion as of Dec. 31, 2024.Universal Health’s Full-Year UpdateNet revenues rose 10.8% year over year in 2025. Operating expenses rose 7.9% year over year.Adjusted EPS rose 57.6% year over year in 2025 to $16.61.2025 Guidance of Universal HealthManagement expects net revenues to be between $17.020 billion and $17.364 billion, the mid-point of which indicates an improvement of 8.6% from the 2024 figure.Adjusted EBITDA, net of NCI, is estimated to be in the range of $2.357-$2.484 billion, the mid-point of which indicates 7.8% growth from the 2024 figure. EPS is expected to lie in the band of $18.45-$19.95, the midpoint of which implies a rise of 15.6% from the 2024 figure.Depreciation and amortization is anticipated to be $639.6 million. Interest expenses are estimated at around $150.3 million. Capital expenditures are expected to be between $850 million and $1 billion.UHS’ Zacks RankUniversal Health currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Medical Sector ReleasesHere are some stocks in the broader Medical space that have also reported earnings for the December quarter: HCA Healthcare, Inc. HCA, The Ensign Group, Inc. ENSG and The Cigna Group CI.HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven by higher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.Ensign reported fourth-quarter 2024 adjusted EPS of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and increased skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents. Cigna reported fourth-quarter 2024 adjusted EPS of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS): Free Stock Analysis Report Cigna Group (CI): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report The Ensign Group, Inc. (ENSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks