Universal Health Services (NYSE:UHS) Updates FY 2024 Earnings Guidance

Universal Health Services (NYSE:UHS) issued an update on its FY 2024 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 15.400-16.200 for the period, compared to the consensus earnings per share estimate of 13.790. The company issued revenue guidance of $15.6 billion-$15.8 billion, compared to the consensus revenue estimate of $15.6 billion.

Universal Health Services Stock Performance

Universal Health Services stock traded up $19.02 during mid-day trading on Thursday, hitting $204.99. The company had a trading volume of 2,756,521 shares, compared to its average volume of 639,201. The company has a current ratio of 1.38, a quick ratio of 1.28 and a debt-to-equity ratio of 0.75. Universal Health Services has a 12-month low of $119.90 and a 12-month high of $207.70. The company’s fifty day moving average is $184.35 and its 200-day moving average is $173.21. The company has a market capitalization of $13.72 billion, a price-to-earnings ratio of 17.34, a P/E/G ratio of 0.88 and a beta of 1.28.

Universal Health Services (NYSE:UHS) last issued its earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.37 by $0.94. The business had revenue of $3.91 billion during the quarter, compared to the consensus estimate of $3.87 billion. Universal Health Services had a return on equity of 13.34% and a net margin of 5.57%. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period last year, the company earned $2.53 EPS. Equities research analysts predict that Universal Health Services will post 13.83 EPS for the current year.

Universal Health Services Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 0.39%. The ex-dividend date of this dividend is Tuesday, September 3rd. Universal Health Services’s dividend payout ratio is currently 6.78%.

Universal Health Services declared that its board has authorized a stock repurchase plan on Wednesday, July 24th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the health services provider to repurchase up to 8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on UHS. Cantor Fitzgerald reiterated an underweight rating and issued a $162.00 price objective on shares of Universal Health Services in a research note on Thursday. Stephens reiterated an equal weight rating and issued a $200.00 price objective on shares of Universal Health Services in a research note on Thursday. Baird R W upgraded Universal Health Services from a hold rating to a strong-buy rating in a research note on Wednesday, June 26th. Robert W. Baird upgraded Universal Health Services from a neutral rating to an outperform rating and lifted their price objective for the company from $198.00 to $236.00 in a research note on Wednesday, June 26th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on Universal Health Services from $208.00 to $203.00 and set a buy rating for the company in a research note on Friday, April 12th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of Moderate Buy and an average price target of $195.29.

Universal Health Services Company Profile

Universal Health Services, Inc, through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services.