RBC Capital analyst Ben Hendrix has revised the price target for Universal Health Services (UHS, Financial), bringing it down from $211 to $201. Despite the firm maintaining a Sector Perform rating on the shares, the company witnessed a decline in stock value following its recent earnings call. This drop was attributed to challenging volume trends in the behavioral health segment and uncertainties regarding meeting behavioral guidance for the remainder of the year. However, there is a glimmer of optimism as the analyst notes positive momentum beginning to emerge in late March and April.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Universal Health Services Inc (UHS, Financial) is $224.15 with a high estimate of $280.00 and a low estimate of $186.41. The average target implies an upside of 30.31% from the current price of $172.01. More detailed estimate data can be found on the Universal Health Services Inc (UHS) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Universal Health Services Inc's (UHS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Universal Health Services Inc (UHS, Financial) in one year is $208.15, suggesting a upside of 21.01% from the current price of $172.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Universal Health Services Inc (UHS) Summary page.
UHS Key Business Developments
Release Date: April 29, 2025
- Net Income per Diluted Share: $4.80 for Q1 2025; Adjusted net income per diluted share: $4.84.
- Same Facility Adjusted Admissions: Increased by 2.4% in acute care hospitals.
- Same Facility Net Revenues (Acute Care): Increased by 5.0% in Q1 2025.
- Operating Expenses: Increased by 2.6% on a same facility basis.
- EBITDA: Increased by 21% after excluding Medicaid supplemental payments.
- Same Facility Net Revenues (Behavioral Health): Increased by 5.5%.
- Revenue per Adjusted Day (Behavioral Health): Increased by 5.8%.
- Cash from Operating Activities: Decreased from $396 million in Q1 2024 to $360 million in Q1 2025.
- Capital Expenditures: $239 million in Q1 2025.
- Share Repurchase: Acquired 1 million shares at a cost of approximately $181 million.
- Available Borrowing Capacity: $1.02 billion as of March 31, 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Universal Health Services Inc (UHS, Financial) reported a net income per diluted share of $4.80 for Q1 2025, with an adjusted net income of $4.84.
- Same facility net revenues in the acute care hospital segment increased by 5.0% compared to the previous year.
- Operating expenses were well managed, with a modest increase of 2.6% over the previous year.
- The company experienced a 21% increase in EBITDA, excluding Medicaid supplemental payments.
- West Henderson Hospital in Las Vegas opened in late 2024 and posted a modestly positive EBITDA in Q1 2025.
Negative Points
- Cash generated from operating activities decreased from $396 million in Q1 2024 to $360 million in Q1 2025.
- The year-over-year patient day growth comparison was negatively impacted by the extra leap day in 2024 and challenging winter weather conditions.
- There were delays in receipt of funds related to certain Medicaid supplemental payments, impacting cash flow.
- Behavioral health hospital patient days were relatively flat compared to the prior year, affected by weather and leap year impacts.
- The company faces uncertainty in the external operating environment, particularly regarding Medicaid supplemental payments.
