Universal Health Q2 Earnings Beat on Strong Acute Care Admissions

Universal Health Services, Inc. UHS reported second-quarter 2025 adjusted earnings per share (EPS) of $5.35, which beat the Zacks Consensus Estimate by 10.3%. The bottom line climbed 24.1% year over year.Net revenues advanced 9.6% year over year to nearly $4.3 billion. The top line surpassed the consensus mark by 1.5%.UHS’ strong quarterly results benefited from continued growth in admissions at its acute care facilities and behavioral health care services, resulting in substantial contributions from the segments. However, the upside was partly offset by higher expenses.Universal Health Services, Inc. Price, Consensus and EPS Surprise Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. QuoteUHS’ Quarterly Operational UpdateAdjusted EBITDA, net of NCI, was $642.9 million, which improved nearly 11.1% year over year and surpassed our estimate of $602.8 million.Total operating costs escalated 9% year over year to $3.8 billion due to higher salaries, wages and benefits, supplies and other operating expenses.UHS’ Segmental UpdateAcute Care Hospital ServicesAdjusted admissions (adjusted for outpatient activity) rose 2% on a same-facility basis. Adjusted patient days grew 1.1% year over year. Net revenues stemming from Universal Health’s acute care services advanced 7.9% on a same-facility basis.Behavioral Health Care ServicesAdjusted admissions increased 0.4% on a same-facility basis in the quarter. Adjusted patient days rose 1.2% on a same-facility basis. Net revenues derived from UHS’ behavioral healthcare services increased 8.9% on a same-facility basis.Financial Update of UHS (As of June 30, 2025)Universal Health exited the second quarter with cash and cash equivalents of $137.6 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 $1.08 billion at the second-quarter end.Total assets of $15 billion increased from $14.5 billion at 2024-end.Long-term debt amounted to $4.5 billion, which increased 1.7% from the 2024-end level. Current maturities of long-term debt totaled $40.9 million.Total equity of $7.1 billion rose from the 2024-end figure of $6.7 billion.UHS generated cash flows from operations of $549 million in the second quarter of 2025, which declined 19.2% from the year-ago period.UHS’ Share Repurchase UpdateUniversal Health bought back shares worth $150.8 million in the second quarter. The company had a leftover repurchase capacity of around $492.9 million as of June 30, 2025.2025 Guidance of Universal HealthManagement now expects 2025 net revenues to be between $17.096 billion and $17.312 billion, higher than the earlier expected range of $17.020-$17.364 billion.Adjusted EBITDA, net of NCI, is now anticipated to be in the range of $2.458-$2.543 billion, higher than the earlier estimated range of $2.357-$2.484 billion. EPS is now expected in the band of $20-$21, higher than the earlier estimated range of $18.45-$19.95.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 range of $376.81-$407.31 million.UHS’s Zacks Rank & Key PicksUHS currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Medical space are West Pharmaceutical Services Inc WST, Fresenius Medical Care AG & Co. FMS and Doximity, Inc. DOCS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for West Pharmaceutical Services’ current-year earnings of $6.61 per share has witnessed four upward revisions in the past seven days against no movement in the opposite direction. West Pharmaceutical Services beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for current-year revenues is pegged at $3 billion, indicating 4.6% year-over-year growth.The consensus estimate for Fresenius Medical Care’s current-year earnings of $2.22 per share has witnessed four upward revisions in the past 60 days against no movement in the opposite direction. Fresenius Medical Care beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 6.6%. The consensus estimate for current-year revenues is pegged at $22 billion, indicating 5.2% year-over-year growth.The Zacks Consensus Estimate for Doximity’s current-year earnings of $1.46 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Doximity beat earnings estimates in each of the trailing four quarters, with an average surprise being 29.9%. The consensus estimate for current-year revenues is pegged at $625.7 million, indicating 9.7% year-over-year growth.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS): Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report Doximity, Inc. (DOCS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks