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

UHS stock traded up $19.02 during mid-day trading on Thursday, hitting $204.99. 2,756,521 shares of the company were exchanged, compared to its average volume of 639,201. The business has a 50 day simple moving average of $184.35 and a 200-day simple moving average of $173.21. 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 stock has a market capitalization of $13.72 billion, a PE ratio of 17.34, a price-to-earnings-growth ratio of 0.88 and a beta of 1.28. Universal Health Services has a 1-year low of $119.90 and a 1-year high of $207.70.

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

Universal Health Services Dividend Announcement

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

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

Analysts Set New Price Targets

A number of research firms have weighed in on UHS. Royal Bank of Canada boosted their target price on shares of Universal Health Services from $183.00 to $189.00 and gave the stock a sector perform rating in a research note on Tuesday, May 7th. Stephens reissued an equal weight rating and issued a $200.00 price objective on shares of Universal Health Services in a research note on Thursday. TD Cowen boosted their price objective on shares of Universal Health Services from $181.00 to $183.00 and gave the stock a hold rating in a research note on Tuesday, April 30th. JPMorgan Chase & Co. boosted their price objective on shares of Universal Health Services from $182.00 to $186.00 and gave the stock a neutral rating in a research note on Thursday, May 30th. Finally, Baird R W raised shares of Universal Health Services from a hold rating to a strong-buy rating in a research note on Wednesday, June 26th. One analyst has rated the stock with a sell rating, five have given a hold rating, seven have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Universal Health Services currently has a consensus rating of Moderate Buy and a consensus target price of $195.29.

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.