Universal Health to Report Q2 Earnings: What Do the Key Estimates Say?

Universal Health Services, Inc. UHS is set to report second-quarter 2025 results on July 28, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.85 per share on revenues of $4.2 billion.

The company’s second-quarter earnings estimates have been revised downward over the past seven days. The bottom-line projection indicates an increase of 12.5% from the year-ago reported number. Also, the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 8.2%.

For 2025, the Zacks Consensus Estimate for Universal Health’s revenues is pegged at $17.1 billion, implying a rise of 8% year over year. Also, the consensus mark for 2025 earnings per share is pegged at $19.43, indicating growth of around 17% on a year-over-year basis.

Universal Health beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 13.8%. This is depicted in the figure below.

Universal Health Services, Inc. Price and EPS Surprise

Universal Health Services, Inc. price-eps-surprise | Universal Health Services, Inc. Quote

Q2 Earnings Whispers for Universal Health

However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

UHS has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping UHS’ Q2 Results?

Universal Health's second-quarter top line is likely to have been boosted by strong contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments. The Acute Care Hospital Services unit is expected to have benefited from an increase in adjusted admissions and higher revenue per adjusted admission.

The Zacks Consensus Estimate for net revenues in the Acute Care Hospital Services segment is pegged at $2.4 billion, indicating 9.1% year-over-year growth. Both the consensus mark and our model estimate for the unit’s same-facility adjusted admissions indicate 2.4% growth from the prior-year quarter.

The Behavioral Health Care Services segment is likely to have been supported by sustained demand for mental health services as the prevalence of mental health issues among Americans continues. Additionally, the segment's performance is expected to have been aided by growth in adjusted patient days and revenue per adjusted patient day.

The Zacks Consensus Estimate for net revenues in the Behavioral Health Care Services segment is pegged at $1.9 billion, indicating a 7.4% increase from the prior-year quarter. Our estimate for the unit’s adjusted patient days indicates a year-over-year increase of 2.8%.

The factors stated above are likely to have positioned the company for year-over-year growth. However, Universal Health’s margins are likely to have faced pressure from rising total expenses, particularly due to higher salaries, wages and benefits, as well as increased costs for supplies in the second quarter, making an earnings beat uncertain. We anticipate salaries, wages and benefits to increase 6.4% year over year, while supply expenses are expected to escalate nearly 6.7%.

Stocks That Warrant a Look

While an earnings beat looks uncertain for Universal Health, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Cencora, Inc. COR has an Earnings ESP of +1.49% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cencora’s bottom line for the to-be-reported quarter signals a 13.2% improvement from a year ago. Cencora beat earnings estimates in all of the past four quarters, with an average surprise of 6%.

Cardinal Health Inc CAH has an Earnings ESP of +0.72% and carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter signals a 10.3% improvement from a year ago. Cardinal Health beat earnings estimates in all of the past four quarters, with an average surprise of 10.3%.

Davita Inc DVA has an Earnings ESP of +6.67% and currently carries a Zacks Rank #3.

The Zacks Consensus Estimate for Davita’s bottom line for the to-be-reported quarter signals a 4.3% improvement from a year ago. Davita beat earnings estimates in three of the past four quarters, with an average surprise of 3.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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