Universal Health Services (UHS) FY 2025 Annual General Meeting May 14, 2025 10:00 AM ET Speaker0 Hello and welcome to the Annual Meeting of Stockholders of Universal Health Services Inc. Please note that today's meeting is being recorded. After the formal meeting has adjourned, we'll have a question and answer session. Any stockholders logged into the virtual meeting web portal using their 15 digit control number can submit questions or comments at any time by clicking on the Q and A tab. Out of considerati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-10765 UNIVERSAL HEALTH SERVICES, INC. (Exact name of registrant as specified in its charter) DELAWARE 23-2077891 (State or other j ...

Group 1 - Universal Health Services (UHS) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which significantly impacts stock prices [1][3] - The Zacks rating system is based on changes in earnings estimates, which are tracked through a consensus measure from sell-side analysts [1][6] - Rising earnings estimates suggest an improvement in the underlying business of Universal Health Services, which could lead to higher stock prices [5][10] Group 2 - For the fiscal year ending December 2025, Universal Health Services is expected to earn $18.99 per share, reflecting a 14.3% increase from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Universal Health Services has increased by 8.5% [8] - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]

Core Viewpoint - Universal Health Services (UHS) shares have increased by 2.4% recently, closing at $178.74, with a potential upside of 26.3% based on Wall Street analysts' mean price target of $225.81 [1] Price Targets - The average of 16 short-term price targets ranges from a low of $198 to a high of $280, with a standard deviation of $21.94, indicating variability among analysts [2] - The lowest estimate suggests a 10.8% increase from the current price, while the highest estimate indicates a 56.7% upside [2] Analyst Sentiment - Analysts show a consensus that UHS will report better earnings than previously estimated, which historically correlates with stock price increases [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 0.3%, with four estimates moving higher and one lower [12] Zacks Rank - UHS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside [13]

Financial Data and Key Metrics Changes - The company reported net income attributable to UHS per diluted share of $4.8 for Q1 2025, with adjusted net income per diluted share at $4.84 [4] - Adjusted admissions to acute care hospitals increased by 2.4% year-over-year [4] - Same facility net revenues in the Acute Care Hospital segment increased by 5% compared to Q1 2024 [5] - EBITDA increased by 21% after excluding Medicaid supplemental payments [5] - Cash generated from operating activities decreased to $360 million from $396 million in Q1 2024 due to delays in Medicaid payments [6] Business Line Data and Key Metrics Changes - Same facility net revenues at behavioral health hospitals increased by 5.5%, driven by a 5.8% increase in revenue per adjusted day [5] - Adjusted patient days were relatively flat compared to the prior year, impacted by the leap day in 2024 and adverse weather conditions [6] Market Data and Key Metrics Changes - The company experienced a reacceleration of patient day growth in March 2025 [6] - The Nevada supplemental program received $82 million in payments in April, related to Q1 revenues [6] Company Strategy and Development Direction - The company is focused on managing operating expenses effectively across both business segments [8] - The opening of new facilities, such as West Henderson Hospital, is expected to contribute positively to EBITDA [10] - The company reiterated its full-year earnings guidance despite uncertainties in the external operating environment [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in underlying business performance despite external uncertainties [11] - The company anticipates achieving a behavioral patient day revenue growth target of 2.5% to 3% for the year [15] - Management acknowledged ongoing challenges in labor markets but noted improvements in staffing levels [78] Other Important Information - The company spent $239 million on capital expenditures in Q1 2025 and repurchased $1 million of its own shares [7] - The company has $1.02 billion of available borrowing capacity under its revolving credit facility [7] Q&A Session Summary Question: Insights on behavioral health volumes and future guidance - Management confirmed that the full-year guidance of 2.5% to 3% patient day revenue growth remains reasonable despite a slow start in Q1 [15][20] Question: Updates on Medicaid supplemental payment programs - Management indicated that approvals for Tennessee and D.C. programs are expected, but timing remains uncertain [16][17] Question: Impact of tariffs on supply chain - Management noted that approximately 75% of supply chain purchases are insulated from tariffs, and they are monitoring vendor responses [26][28] Question: Trends in acute business and acuity - Management reported that acuity was muted in Q1 due to a busy flu season but expects normalization as the year progresses [62] Question: Expense management and premium labor costs - Premium pay costs were consistent at $63 million, and management is optimistic about sustaining operating expense controls [70][72] Question: Updates on commercial rate negotiations - Management stated that overall guidance for acute care revenue growth remains at 5% to 6%, with no significant impact from payer behavior noted [105][106]

Core Insights - Universal Health Services, Inc. (UHS) reported first-quarter 2025 adjusted earnings per share (EPS) of $4.84, exceeding the Zacks Consensus Estimate by 11% and reflecting a year-over-year increase of 30.8% [1] - Net revenues for the quarter reached nearly $4.1 billion, marking a 6.7% year-over-year growth, although it fell short of the consensus estimate by 1.1% [1] Financial Performance - Adjusted EBITDA net of NCI was $598.2 million, up 13.8% year over year, surpassing the estimate of $559.3 million [3] - Total operating costs increased by 5.5% year over year to $3.6 billion, driven by higher salaries, wages, benefits, and other operating expenses [3] - Cash and cash equivalents at the end of the first quarter stood at $126.8 million, slightly up from $126 million at the end of 2024 [6] - Total assets increased to $14.9 billion from $14.5 billion at the end of 2024 [6] - Long-term debt rose to $4.6 billion from $4.5 billion as of December 31, 2024 [7] - Cash flows from operations were $360 million, down 9.2% from the previous year [7] Segment Performance - Acute Care Hospital Services saw adjusted admissions rise by 2.4% on a same-facility basis, with net revenues increasing by 6.5% [4] - Behavioral Health Care Services experienced a 1.6% decline in adjusted admissions on a same-facility basis, but net revenues increased by 5.5% [5] Share Repurchase and Guidance - UHS repurchased shares worth $180.6 million in the first quarter, with a remaining repurchase capacity of approximately $643.7 million [8] - The company anticipates 2025 net revenues between $17.02 billion and $17.36 billion, indicating an 8.6% improvement from 2024 [10] - Adjusted EBITDA is projected to be in the range of $2.36 billion to $2.48 billion, suggesting a 7.8% growth from 2024 [10] - EPS is expected to be between $18.45 and $19.95, implying a 15.6% increase from 2024 [10]

Universal Health Services (UHS) Q1 2025 Earnings Call April 29, 2025 09:00 AM ET Company Participants Steve Filton - Executive VP, CFO & SecretaryMarc Miller - CEO, President & DirectorAndrew Mok - DirectorBen Hendrix - Vice PresidentBenjamin Rossi - Equity Research AssociateJoshua Raskin - Partner - Managed Care & ProvidersCraig Hettenbach - Executive DirectorA.J. Rice - Managing Director Conference Call Participants Justin Lake - Analyst - Healthcare ServicesSarah James - Managing Director & Equity Analys ...

FOR IMMEDIATE RELEASE April 28, 2025 CONTACT: Steve Filton Chief Financial Officer 610-768-3300 UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2025 FIRST QUARTER FINANCIAL RESULTS Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended March 31, 2025 and 2024: KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $316.7 million, or $4.80 per diluted share, during the first quarter of 2025, as comp ...

Core Insights - Universal Health Services (UHS) reported revenue of $4.1 billion for the quarter ended March 2025, reflecting a year-over-year increase of 6.7% [1] - Earnings per share (EPS) for the quarter was $4.84, up from $3.70 in the same quarter last year, resulting in an EPS surprise of +11.01% against the consensus estimate of $4.36 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $4.14 billion, showing a surprise of -1.06% [1] Financial Performance Metrics - Behavioral health admissions totaled 117,788, which was below the two-analyst average estimate of 122,821 [4] - Net revenues from behavioral health services were reported at $1.75 billion, compared to the average estimate of $1.79 billion, marking a year-over-year increase of +5.5% [4] - Net revenues from acute care hospital services matched the average estimate of $2.35 billion, representing a +7.5% change from the previous year [4] - Operating income for behavioral health care services was $337.68 million, slightly below the three-analyst average estimate of $346.29 million [4] - Operating income for acute care hospital services was reported at $254.79 million, exceeding the average estimate of $206.21 million [4] Stock Performance - Shares of Universal Health Services have returned -7.8% over the past month, compared to a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Insights - Universal Health Services (UHS) reported quarterly earnings of $4.84 per share, exceeding the Zacks Consensus Estimate of $4.36 per share, and up from $3.70 per share a year ago, representing an earnings surprise of 11.01% [1] - The company posted revenues of $4.1 billion for the quarter ended March 2025, which was 1.06% below the Zacks Consensus Estimate, but an increase from $3.84 billion year-over-year [2] - UHS has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] Earnings Outlook - The sustainability of UHS's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.84 on revenues of $4.21 billion, and for the current fiscal year, it is $18.94 on revenues of $17.12 billion [7] Industry Context - The Medical - Hospital industry, to which UHS belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]