UL Solutions (NYSE:ULS) Announces Quarterly Earnings Results

Key Points

• UL Solutions reported quarterly EPS of $0.62, matching analyst expectations, while revenue reached $823 million, exceeding estimates of $815.72 million. Revenue increased 5.1% year over year, and EPS rose from $0.56 in the prior-year quarter.
• The company maintains a quarterly dividend of $0.145 per share, or $0.58 annualized, representing a 0.8% yield and a 23.48% payout ratio.
• Analysts hold a generally positive view, with seven Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $95.88; however, recent ratings included several downgrades and target-price reductions.

UL Solutions (NYSE:ULS - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.62 earnings per share for the quarter, meeting analysts' consensus estimates of $0.62, FiscalAI reports. UL Solutions had a return on equity of 28.81% and a net margin of 16.02%. The firm had revenue of $823.00 million during the quarter, compared to analyst estimates of $815.72 million. During the same quarter in the prior year, the firm posted $0.56 earnings per share. The business's quarterly revenue was up 5.1% compared to the same quarter last year.

UL Solutions Price Performance

Shares of ULS stock opened at $74.94 on Tuesday. The firm has a market cap of $15.13 billion, a P/E ratio of 30.34, a P/E/G ratio of 3.00 and a beta of 0.72. UL Solutions has a fifty-two week low of $63.17 and a fifty-two week high of $107.54. The business's 50 day moving average price is $70.69 and its 200-day moving average price is $82.46. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.42 and a current ratio of 1.42.

UL Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 31st were given a $0.1450 dividend. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, August 31st. UL Solutions's dividend payout ratio (DPR) is currently 23.48%.

Insider Activity at UL Solutions

In related news, CEO Jennifer Scanlon sold 12,500 shares of the company's stock in a transaction that occurred on Thursday, October 8th. The stock was sold at an average price of $70.08, for a total transaction of $876,000.00. Following the completion of the transaction, the chief executive officer owned 126,724 shares in the company, valued at $8,880,817.92. This represents a 8.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.20% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently commented on ULS. The Goldman Sachs Group set a $86.00 target price on shares of UL Solutions in a research note on Wednesday, August 5th. UBS Group upped their price target on shares of UL Solutions from $96.00 to $97.00 and gave the company a "buy" rating in a report on Monday, October 12th. Zacks Research cut shares of UL Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Wall Street Zen lowered shares of UL Solutions from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Finally, Robert W. Baird decreased their price objective on shares of UL Solutions from $95.00 to $85.00 and set an "outperform" rating on the stock in a research report on Thursday, September 24th. Seven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $95.88.

About UL Solutions

UL Solutions Inc NYSE: ULS is a global applied safety science company that provides testing, inspection, certification, and advisory services. The company helps manufacturers, retailers, regulators, and other organizations evaluate the safety, security, performance, quality, and sustainability of products, facilities, and systems.

Its services cover a broad range of industries, including consumer products, industrial equipment, energy, mobility, information technology, and the built environment.

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