UHS Earnings Preview: Revenue Growth Expected
The company's ability to deliver strong earnings results will depend on its ability to manage rising expenses and maintain its revenue growth momentum, with analysts expecting a 7.8% year-over-year increase in revenue to $4.14 billion.
Universal Health Services, a leading hospital management company, is set to announce its quarterly earnings on April 28, 2025, with analysts estimating an earnings per share (EPS) of $4.38, representing a 17.8% year-over-year increase. The company has a history of beating EPS estimates, with a 3.3% increase in share price following the last quarter's beat.
The company's revenue is expected to grow 7.8% year-over-year to $4.14 billion, driven by strong contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments. However, Universal Health's margins are likely to have faced pressure from rising total expenses, particularly due to higher salaries, wages, and benefits, and increased costs for supplies. Despite this, the company's Return on Equity (ROE) is 5.01%, exceeding industry averages.
Analysts have a neutral consensus rating for UHS, with an average one-year price target of $219.86, suggesting a 26.36% upside. The company's market capitalization is over $20 billion, with a revenue growth rate of 11.08% and a net margin of 8.08%. UHS operates in two segments: Acute Care Hospital Services and Behavioral Health Services, with the former generating the majority of its revenue.
As the company prepares to announce its earnings, investors will be closely watching the results to see if UHS can continue its trend of beating EPS estimates. With a strong track record of revenue growth and a solid financial position, UHS is well-positioned to navigate the challenges facing the healthcare industry.