ZACKS·2025-10-28 19:16Core Insights - Universal Health Services, Inc. (UHS) reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, exceeding the Zacks Consensus Estimate by 22.1% and reflecting a year-over-year increase of 53.4% [1][8] - Net revenues reached $4.5 billion, marking a 13.4% year-over-year improvement and surpassing the consensus mark by 4.2% [1][8] Financial Performance - Adjusted EBITDA, net of non-controlling interests (NCI), increased by 27.4% year over year to $670.6 million, exceeding the estimate of $577.4 million [3][8] - Total operating costs were $4 billion, rising 11% year over year due to higher salaries, wages, benefits, and supplies, which was above the estimated $3.9 billion [3] Segment Performance - Acute Care Hospital Services: Adjusted admissions grew 2% on a same-facility basis, with adjusted patient days up 0.4% year over year and net revenue per adjusted admission increasing by 9.8%. Net revenues from acute care services improved by 12.8% on a same-facility basis [4] - Behavioral Health Care Services: Adjusted admissions rose 0.5% on a same-facility basis, with adjusted patient days increasing by 1.3% and net revenue per adjusted patient day advancing by 7.9%. Net revenues from behavioral healthcare services improved by 9.3% on a same-facility basis [5] Cash and Debt Position - As of September 30, 2025, UHS had cash and cash equivalents of $112.9 million, a decrease of 10.4% from the end of 2024. The company has an available borrowing capacity of $965 million under its $1.3 billion revolving credit facility [6] - Long-term debt stood at $4 billion, down 11.5% year over year, with current maturities totaling $740.2 million. Total equity increased by 7.1% to $7.2 billion [7] Share Repurchase and Guidance - UHS repurchased shares worth approximately $234.3 million in the third quarter and approved a $1.5 billion increase to its stock repurchase program, bringing the total remaining authorization to $1.8 billion [9] - The company revised its 2025 guidance, forecasting net revenues between $17.306 billion and $17.445 billion, indicating a 9.8% growth from 2024. Adjusted EBITDA is now expected to be in the range of $2.569 billion to $2.619 billion [10][11]