Universal Health Services (NYSE:UHS) Issues 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 (EPS) guidance of 15.400-16.200 for the period, compared to the consensus 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 Price Performance

NYSE UHS traded up $8.14 during trading on Friday, hitting $213.13. 940,360 shares of the company’s stock were exchanged, compared to its average volume of 641,309. The stock’s 50 day moving average price is $184.87 and its two-hundred day moving average price is $173.43. Universal Health Services has a fifty-two week low of $119.90 and a fifty-two week high of $214.00. The company has a current ratio of 1.38, a quick ratio of 1.28 and a debt-to-equity ratio of 0.75. The company has a market cap of $14.26 billion, a PE ratio of 18.05, a P/E/G ratio of 0.88 and a beta of 1.28.

Universal Health Services (NYSE:UHS) last posted its earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share for the quarter, topping analysts’ consensus estimates of $3.37 by $0.94. Universal Health Services had a net margin of 6.22% and a return on equity of 15.12%. The firm had revenue of $3.91 billion for the quarter, compared to analysts’ expectations of $3.87 billion. During the same quarter in the previous year, the firm posted $2.53 earnings per share. The company’s revenue was up 10.1% on a year-over-year basis. Research analysts expect that Universal Health Services will post 13.83 EPS for the current year.

Universal Health Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.38%. The ex-dividend date is Tuesday, September 3rd. Universal Health Services’s dividend payout ratio is currently 6.78%.

Universal Health Services announced that its board has approved a stock repurchase program on Wednesday, July 24th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to purchase up to 8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Royal Bank of Canada raised their price target on shares of Universal Health Services from $183.00 to $189.00 and gave the company a sector perform rating in a research note on Tuesday, May 7th. StockNews.com raised Universal Health Services from a buy rating to a strong-buy rating in a research report on Wednesday, July 17th. Robert W. Baird upgraded Universal Health Services from a neutral rating to an outperform rating and upped their price target for the company from $198.00 to $236.00 in a research report on Wednesday, June 26th. Baird R W raised Universal Health Services from a hold rating to a strong-buy rating in a research note on Wednesday, June 26th. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on shares of Universal Health Services from $208.00 to $203.00 and set a buy rating for the company in a research report on Friday, April 12th. Five research analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of Moderate Buy and a consensus price target of $206.14.

About Universal Health Services

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.