Universal Health Services (NYSE:UHS) Posts Quarterly Earnings Results, Beats Expectations By $0.50 EPS

Key Points

• Universal Health Services reported a quarterly earnings per share (EPS) of $5.35, exceeding analyst estimates of $4.87 by $0.48.
• The company has announced a quarterly dividend of $0.20 per share, with a dividend payout ratio of 4.49%.
• Analysts maintain a consensus rating of "Hold" for the stock, with a target price averaging $221.85, despite varied views on its future performance.

Universal Health Services (NYSE:UHS - Get Free Report) released its quarterly earnings data on Monday. The health services provider reported $5.35 EPS for the quarter, beating the consensus estimate of $4.85 by $0.50, Zacks reports. The company had revenue of $4.28 billion during the quarter, compared to the consensus estimate of $4.24 billion. Universal Health Services had a return on equity of 17.79% and a net margin of 7.44%. The firm's revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.31 EPS. Universal Health Services updated its FY 2025 guidance to 20.000-21.000 EPS.

Universal Health Services Stock Down 0.4%

UHS stock opened at $154.92 on Tuesday. The stock's fifty day simple moving average is $178.96 and its two-hundred day simple moving average is $180.36. The company has a current ratio of 1.32, a quick ratio of 1.23 and a debt-to-equity ratio of 0.67. Universal Health Services has a 1-year low of $152.96 and a 1-year high of $243.25. The stock has a market cap of $10.07 billion, a P/E ratio of 8.69, a P/E/G ratio of 0.68 and a beta of 1.28.

Universal Health Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.80 annualized dividend and a yield of 0.52%. Universal Health Services's dividend payout ratio is currently 4.49%.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on UHS shares. Barclays increased their price target on Universal Health Services from $249.00 to $257.00 and gave the company an "overweight" rating in a research note on Tuesday, April 29th. Royal Bank Of Canada reduced their target price on Universal Health Services from $211.00 to $201.00 and set a "sector perform" rating on the stock in a report on Wednesday, April 30th. Bank of America lowered Universal Health Services from a "neutral" rating to an "underperform" rating and reduced their price objective for the company from $215.00 to $185.00 in a research note on Wednesday, July 16th. Baird R W downgraded Universal Health Services from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 15th. Finally, Robert W. Baird restated a "neutral" rating and set a $224.00 price objective (down from $274.00) on shares of Universal Health Services in a research report on Tuesday, April 15th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $221.85.

Insiders Place Their Bets

In other news, Director Maria Ruderman Singer sold 1,097 shares of the company's stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $191.48, for a total transaction of $210,053.56. Following the transaction, the director owned 7,884 shares of the company's stock, valued at $1,509,628.32. This represents a 12.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 16.40% of the company's stock.

Institutional Trading of Universal Health Services

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. United Services Automobile Association purchased a new position in shares of Universal Health Services in the 1st quarter worth about $235,000. Focus Partners Wealth boosted its holdings in Universal Health Services by 80.6% during the 1st quarter. Focus Partners Wealth now owns 2,631 shares of the health services provider's stock valued at $494,000 after acquiring an additional 1,174 shares during the period. Finally, NewEdge Advisors LLC boosted its holdings in Universal Health Services by 2.7% during the 1st quarter. NewEdge Advisors LLC now owns 2,665 shares of the health services provider's stock valued at $501,000 after acquiring an additional 69 shares during the period. 86.05% of the stock is currently owned by institutional investors.

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.