Zacks Research Has Optimistic Outlook of UHS FY2025 Earnings

Key Points

• Zacks Research raised their FY2025 earnings estimate for Universal Health Services to $20.33 per share, up from a previous forecast of $19.03, while the consensus estimate for the current year is $15.92.
• Shares of Universal Health Services currently have a neutral rating with an average price target of $216.54, as multiple analysts adjusted their ratings recently.
• The company announced a quarterly dividend of $0.20 per share, with payment scheduled for September 16, 2023, representing a 0.5% dividend yield.

Universal Health Services, Inc. (NYSE:UHS - Free Report) - Zacks Research increased their FY2025 earnings estimates for shares of Universal Health Services in a research report issued on Monday, August 11th. Zacks Research analyst R. Department now expects that the health services provider will earn $20.33 per share for the year, up from their prior forecast of $19.03. The consensus estimate for Universal Health Services' current full-year earnings is $15.92 per share. Zacks Research also issued estimates for Universal Health Services' Q4 2025 earnings at $5.61 EPS, FY2026 earnings at $21.59 EPS and FY2027 earnings at $23.23 EPS.

Several other analysts have also recently weighed in on the company. Wall Street Zen cut Universal Health Services from a "strong-buy" rating to a "buy" rating in a report on Sunday. Baird R W lowered shares of Universal Health Services from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 15th. UBS Group set a $227.00 price target on shares of Universal Health Services in a research note on Wednesday, July 30th. Robert W. Baird reiterated a "neutral" rating and set a $224.00 price target (down previously from $274.00) on shares of Universal Health Services in a report on Tuesday, April 15th. Finally, Stephens raised shares of Universal Health Services to a "hold" rating in a research note on Monday, June 2nd. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $216.54.

Universal Health Services Price Performance

Shares of UHS opened at $175.41 on Wednesday. The company has a quick ratio of 1.19, a current ratio of 1.29 and a debt-to-equity ratio of 0.64. The stock has a market cap of $11.40 billion, a PE ratio of 9.24, a PEG ratio of 0.71 and a beta of 1.24. Universal Health Services has a 12-month low of $152.33 and a 12-month high of $243.25. The business has a 50-day simple moving average of $174.06 and a two-hundred day simple moving average of $178.99.

Universal Health Services (NYSE:UHS - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The health services provider reported $5.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.85 by $0.50. Universal Health Services had a net margin of 7.66% and a return on equity of 18.25%. The company had revenue of $4.28 billion during the quarter, compared to the consensus estimate of $4.24 billion. During the same period in the prior year, the business earned $4.31 earnings per share. The company's revenue for the quarter was up 9.6% compared to the same quarter last year.

Universal Health Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. Universal Health Services's dividend payout ratio is presently 4.21%.

Hedge Funds Weigh In On Universal Health Services

A number of institutional investors and hedge funds have recently modified their holdings of the business. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new stake in shares of Universal Health Services in the 2nd quarter valued at $417,000. Quadrant Capital Group LLC raised its holdings in shares of Universal Health Services by 44.4% during the second quarter. Quadrant Capital Group LLC now owns 2,694 shares of the health services provider's stock valued at $488,000 after purchasing an additional 828 shares during the period. Vinva Investment Management Ltd boosted its position in shares of Universal Health Services by 34.9% during the 2nd quarter. Vinva Investment Management Ltd now owns 103,306 shares of the health services provider's stock worth $18,661,000 after purchasing an additional 26,748 shares in the last quarter. Employees Retirement System of Texas bought a new position in shares of Universal Health Services during the 2nd quarter worth about $86,000. Finally, Choreo LLC grew its stake in shares of Universal Health Services by 3.9% in the 2nd quarter. Choreo LLC now owns 1,838 shares of the health services provider's stock valued at $333,000 after buying an additional 69 shares during the period. 86.05% of the stock is currently owned by institutional investors.

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.

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