The earnings call reflected a balanced sentiment with strong revenue growth and well-controlled expenses highlighting the positive aspects. However, increased liability reserves, challenges in behavioral health volume recovery, and moderated acute care volumes presented challenges.

Company Guidance

During the third quarter 2024 earnings call for Universal Health Services (UHS), several key metrics and guidance were discussed by Steve Filton, Executive Vice President and CFO. The company reported a net income per diluted share of $3.80, with adjusted net income at $3.71. Acute care volumes showed a moderated increase with adjusted admissions up 1.5% year-over-year, while revenue growth was a robust 8.6%, excluding the insurance subsidiary. Premium pay expenses were reduced by 12% from the previous year, amounting to $60 million. The quarter also saw aggregate net incremental reimbursements of $20 million from state Medicaid programs. EBITDA for acute care hospitals rose by 36% year-over-year, or 17% excluding Medicaid payments. Behavioral health hospitals experienced a same-facility revenue increase of 10.5%, primarily due to an 8.5% rise in revenue per adjusted patient day. The company's capital expenditure stood at $698 million for the first nine months of 2024, and they repurchased 1.7 million shares for $350 million. The guidance for 2024 did not change, despite various supplemental Medicaid program developments anticipated to benefit future periods, including potential program expansions in Tennessee, Washington D.C., and Nevada.

Solid Revenue Growth

Overall revenue growth was a solid 8.6%, excluding the impact of the insurance subsidiary.

Decrease in Premium Pay Expenses

Premium pay in the third quarter was $60 million, reflecting a 12% decline from the prior year quarter.

Improved EBITDA in Acute Care Hospitals

EBITDA at acute care hospitals increased 36% during the third quarter of 2024 compared to the prior year quarter.

Cash Flow and Share Repurchase

Cash generated from operating activities was $1.4 billion during the first 9 months of 2024. The company spent $350 million repurchasing 1.7 million of its own shares.

New Facility Developments

Construction continues on new acute care hospitals in Las Vegas, Washington D.C., and Florida, with a new behavioral health hospital opened in California.

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Universal Health (UHS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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UHS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 25, 2018	2018 (Q2)	- / 2.47	1.94	27.32% (+0.53)	―	―
Oct 25, 2018	2018 (Q3)	- / 2.23	1.49	49.66% (+0.74)	―	―
Feb 27, 2019	2018 (Q4)	- / 2.37	2	18.50% (+0.37)	―	―
Apr 25, 2019	2019 (Q1)	- / 2.45	2.45	0.00% (0.00)	―	―
Jul 25, 2019	2019 (Q2)	- / 2.76	2.47	11.74% (+0.29)	―	―
Oct 24, 2019	2019 (Q3)	- / 1.99	2.23	-10.76% (-0.24)	―	―
Feb 26, 2020	2019 (Q4)	- / 2.79	2.37	17.72% (+0.42)	―	―
Apr 27, 2020	2020 (Q1)	- / 1.73	2.45	-29.39% (-0.72)	―	―
Jul 27, 2020	2020 (Q2)	- / 2.93	2.76	6.16% (+0.17)	―	―
Oct 29, 2020	2020 (Q3)	- / 2.88	1.99	44.72% (+0.89)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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UHS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 24, 2024	$224.44	$202.55	-9.75%
Jul 24, 2024	$185.63	$204.61	+10.22%
Apr 24, 2024	$165.42	$164.62	-0.48%
Feb 27, 2024	$165.11	$161.06	-2.45%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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