Universal Health Services, Inc. (UHS), headquartered in King of Prussia, Pennsylvania, is a leading provider of acute care hospitals, outpatient facilities, and behavioral health services. With a market capitalization of $12 billion, the company offers a wide range of services including general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and behavioral health services.
The company is set to announce its fiscal Q2 earnings for 2025 on Wednesday, July 23. Analysts are projecting a profit of $4.87 per share for UHS, a 13% increase from the previous year’s $4.31 per share. In the last four quarters, UHS has exceeded Wall Street’s bottom-line estimates three times and missed once. In the previous quarter, the company reported earnings of $4.84 per share, surpassing consensus estimates by 11%.
For the full year, analysts anticipate UHS to report earnings per share (EPS) of $19.43, reflecting a 17% increase from fiscal 2024’s $16.61. Looking ahead to fiscal 2026, UHS’s EPS is expected to grow by 8.9% year-over-year to $21.16.
Over the past 52 weeks, UHS has experienced a slight decline, underperforming the S&P 500 Index’s 13% return during the same period. However, it has outperformed the Health Care Select Sector SPDR Fund’s (XLV) 6.3% decrease over the same timeframe.
In its Q1 results released on April 28, UHS saw a 6.7% year-over-year increase in overall revenue to $4.1 billion. Despite this growth, the revenue fell slightly short of consensus estimates. On the earnings front, the company’s adjusted EPS surged by 30.8% year-over-year to $4.84, exceeding analyst estimates by 11% due to favorable pricing and margin improvement.
Wall Street analysts have a moderately optimistic outlook on UHS’s stock, giving it a “Moderate Buy” rating overall. Of the 19 analysts covering the stock, eight recommend a “Strong Buy” rating, while 11 advise holding onto the stock. The average price target for UHS is $226.19, indicating a potential 22.6% upside from current levels.
In conclusion, UHS continues to show strong performance and growth prospects in the healthcare sector. Investors are eagerly awaiting the company’s upcoming earnings report to gain further insights into its financial health and future trajectory. This article was originally published on Barchart.com and is intended for informational purposes only.
