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Universal Health Services, Inc. UHS reported first-quarter 2025 adjusted earnings per share (EPS) of $4.84, which beat the Zacks Consensus Estimate by 11%. The bottom line climbed 30.8% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Net revenues advanced 6.7% year over year to nearly $4.1 billion. However, the top line missed the consensus mark by 1.1%.
UHS’ better-than-expected quarterly earnings were aided by continued growth in admissions at its acute care facilities, resulting in substantial contributions from the segment. Higher same-facility-adjusted patient days also contributed positively to the outcomes. However, the upside was partly offset by higher expenses.
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Adjusted EBITDA net of NCI was $598.2 million, which improved nearly 13.8% year over year and surpassed our estimate of $559.3 million.
Total operating costs escalated 5.5% year over year to $3.6 billion due to higher salaries, wages and benefits, and other operating expenses.
Acute Care Hospital Services
Adjusted admissions (adjusted for outpatient activity) rose 2.4% on a same-facility basis. Adjusted patient days grew 0.3% year over year. Net revenues stemming from Universal Health’s acute care services advanced 6.5% on a same-facility basis.
Behavioral Health Care Services
Adjusted admissions decreased 1.6% on a same-facility basis in the quarter. Adjusted patient days declined 0.3% on a same-facility basis. Net revenues derived from UHS’ behavioral healthcare services increased 5.5% on a same-facility basis.
Universal Health exited the first quarter with cash and cash equivalents of $126.8 million, which rose from the 2024-end level figure of $126 million. As part of its $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $1.02 billion at the first-quarter end.
Total assets of $14.9 billion increased from $14.5 billion at 2024-end.
Long-term debt amounted to $4.6 billion, which increased from $4.5 billion as of Dec. 31, 2024. Current maturities of long-term debt totaled $40.4 million.
Total equity of $6.9 billion rose from the 2024-end figure of $6.7 billion.
UHS generated cash flows from operations of $360 million in the first quarter of 2025, which declined 9.2% from the year-ago period.
Universal Health bought back shares worth $180.6 million in the first quarter. The company had a leftover repurchase capacity of around $643.7 million as of March 31, 2025.
Management earlier expected 2025 net revenues to be between $17.02 billion and $17.36 billion, the midpoint of which indicates an improvement of 8.6% from the 2024 figure.
Adjusted EBITDA, net of NCI, was estimated in the range of $2.36-$2.48 billion, the midpoint of which indicates 7.8% growth from the 2024 figure. EPS was earlier expected in the band of $18.45-$19.95, the midpoint of which implies a rise of 15.6% from the 2024 figure.
Depreciation and amortization expenses were earlier anticipated to be $639.6 million. Interest expenses were estimated at around $150.3 million. Capital expenditures were earlier expected to be between $850 million and $1 billion. Provision for income taxes was expected in the band of $376.81-$407.31 million.
UHS currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader medical space are Aveanna Healthcare Holdings Inc. AVAH, ANI Pharmaceuticals Inc. ANIP and BeiGene, Ltd. ONC, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Aveanna Healthcare’s current-year earnings of 12 cents per share has witnessed one upward revision in the past month against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $2.1 billion, implying 4.6% year-over-year growth.
The Zacks Consensus Estimate for ANI Pharmaceuticals’ current-year earnings is pegged at $6.36 per share. ANI Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.3%. The consensus estimate for current-year revenues is pegged at $769.2 million, implying 25.2% year-over-year growth.
The Zacks Consensus Estimate for BeiGene’s current-year earnings of $1.54 per share has witnessed one upward revision in the past week against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $5.1 billion, calling for 34.6% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).
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