Universal Health to Report Q4 Earnings: What Do the Estimates Say?

Core Insights - Universal Health Services, Inc. (UHS) is scheduled to report its fourth-quarter 2024 results on February 26, 2025, with earnings estimated at $4.19 per share and revenues at$ 3.99 billion [1][2] Earnings Estimates - The earnings estimate for the fourth quarter has increased by $0.01 over the past week, indicating a year-over-year increase of 33.9%, while the revenue estimate suggests a growth of 7.9% year-over-year [2] - UHS has beaten the consensus earnings estimate in three of the last four quarters, with an average surprise of 12.1% [3] Earnings Prediction Model - The current model does not predict a definitive earnings beat for UHS, as it has an Earnings ESP of +2.03% but a Zacks Rank of 4 (Sell) [4] Revenue Drivers - The revenue growth is expected to be driven by strong performance in the Acute Care Hospital Services and Behavioral Health Care Services segments [6] - The Acute Care Hospital Services segment is projected to generate net revenues of$ 2.26 billion, reflecting an 8.2% year-over-year growth, with adjusted admissions expected to grow by 2.6% [7] - The Behavioral Health Care Services segment is estimated to achieve net revenues of $1.74 billion, indicating a 7.6% increase from the prior year, supported by a 5% increase in adjusted patient days [9] Cost Pressures - Despite the anticipated revenue growth, UHS's margins may face pressure from rising expenses, particularly in salaries, wages, and benefits, which are expected to increase by 4.3% year-over-year, along with a 1.2% rise in supply costs [10]