UL Solutions (NYSE:ULS) Announces Quarterly Earnings Results

Key Points

• UL Solutions reported quarterly earnings of $0.52 per share, exceeding the consensus estimate of $0.47, alongside a year-over-year revenue increase of 6.3% to $776 million.
• The company announced a quarterly dividend of $0.13 per share, representing an annual yield of 0.8% and a payout ratio of 31.14%.
• Wall Street analysts have recently increased their price targets for UL Solutions, with target prices ranging from $71 to $77, indicating a generally optimistic outlook for the stock.

UL Solutions (NYSE:ULS - Get Free Report) posted its earnings results on Tuesday. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.05, Briefing.com reports. UL Solutions had a return on equity of 40.79% and a net margin of 11.60%. The business had revenue of $776.00 million during the quarter, compared to the consensus estimate of $771.55 million. During the same period in the previous year, the business earned $0.44 EPS. The business's quarterly revenue was up 6.3% on a year-over-year basis.

UL Solutions Price Performance

UL Solutions stock traded down $10.81 during mid-day trading on Tuesday, reaching $62.24. The company had a trading volume of 1,264,294 shares, compared to its average volume of 773,285. UL Solutions has a 1 year low of $46.79 and a 1 year high of $74.15. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.24 and a quick ratio of 1.24. The company has a market capitalization of $12.48 billion, a P/E ratio of 37.20 and a beta of 1.00. The stock's 50-day simple moving average is $71.18 and its 200-day simple moving average is $61.97.

UL Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 9th. Shareholders of record on Friday, May 30th were issued a $0.13 dividend. The ex-dividend date of this dividend was Friday, May 30th. This represents a $0.52 dividend on an annualized basis and a yield of 0.8%. UL Solutions's dividend payout ratio (DPR) is 31.14%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on ULS shares. Citigroup reiterated a "neutral" rating and set a $71.00 target price (up previously from $60.50) on shares of UL Solutions in a research note on Wednesday, May 14th. Raymond James Financial increased their target price on shares of UL Solutions from $60.00 to $72.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 7th. UBS Group increased their price target on shares of UL Solutions from $58.00 to $72.00 and gave the stock a "neutral" rating in a report on Wednesday, May 7th. Wells Fargo & Company increased their price target on shares of UL Solutions from $65.00 to $77.00 and gave the stock an "overweight" rating in a report on Wednesday, May 7th. Finally, Robert W. Baird increased their price target on shares of UL Solutions from $60.00 to $73.00 and gave the stock a "neutral" rating in a report on Wednesday, May 7th. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, UL Solutions currently has an average rating of "Hold" and an average price target of $69.43.

Insider Transactions at UL Solutions

In other news, insider Gitte Schjotz sold 7,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 7th. The shares were sold at an average price of $67.44, for a total transaction of $472,080.00. Following the completion of the transaction, the insider directly owned 46,889 shares of the company's stock, valued at $3,162,194.16. This trade represents a 12.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Alberto Uggetti sold 1,961 shares of the firm's stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $70.00, for a total transaction of $137,270.00. Following the transaction, the executive vice president directly owned 9,285 shares of the company's stock, valued at approximately $649,950. This trade represents a 17.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.20% of the company's stock.

Institutional Trading of UL Solutions

Hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. boosted its position in UL Solutions by 104.3% during the first quarter. Goldman Sachs Group Inc. now owns 460,160 shares of the company's stock worth $25,953,000 after acquiring an additional 234,913 shares during the last quarter. Royal Bank of Canada boosted its position in UL Solutions by 119.5% during the first quarter. Royal Bank of Canada now owns 143,431 shares of the company's stock worth $8,090,000 after acquiring an additional 78,081 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in UL Solutions by 11.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 123,771 shares of the company's stock worth $6,981,000 after acquiring an additional 13,205 shares during the last quarter. Finally, Rhumbline Advisers acquired a new position in shares of UL Solutions in the 1st quarter valued at $49,000.

UL Solutions Company Profile

UL Solutions Inc provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators.

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