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Jun 30, 2024
UHS Q2 2024 Earnings Report
UHS's net income and revenues increased during the second quarter of 2024, with an increase in the full year operating results forecast and stock repurchase program authorization.
Key Takeaways
Universal Health Services, Inc. reported a strong second quarter in 2024, with net income attributable to UHS of $289.2 million, or $4.26 per diluted share, compared to $171.3 million, or $2.42 per diluted share, in the second quarter of 2023. Net revenues increased by 10.1% to $3.908 billion. The company also increased its full-year operating results forecast and announced a $1 billion increase to its stock repurchase program authorization.
Net income attributable to UHS was $289.2 million, or $4.26 per diluted share, during the second quarter of 2024.
Net revenues increased by 10.1% to $3.908 billion during the second quarter of 2024.
The company increased its operating results forecast range for consolidated net revenues, Adjusted EBITDA, and Adjusted EPS for the year ended December 31, 2024.
The Board of Directors authorized a $1.0 billion increase to the stock repurchase program.
UHS
UHS
UHS Revenue by Segment
Revenue by Segment
Acute Care Services Revenue
CapyFin.comBehavioral Health Revenue
CapyFin.com Forward Guidance
Based upon the operating trends and financial results experienced during the first six months of 2024, the company is increasing its operating results forecast range for consolidated net revenues; adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests and adjusted net income attributable to UHS per diluted share for the year ended December 31, 2024.
Positive Outlook
- Revised 2024 forecasted net revenues are estimated to be approximately $15.565 billion to $15.753 billion, representing increases of 1.0% to 0.3% over our original 2024 forecasted net revenues.
- Revised 2024 forecasted Adjusted EBITDA, net of NCI, is estimated to be approximately $2.154 billion to $2.226 billion, representing increases of 11.5% to 10.3% over our original 2024 forecasted Adjusted EBITDA, net of NCI.
- Revised 2024 forecasted Adjusted EPS-diluted is estimated to be $15.40 per share to $16.20 per share, representing increases of 18.5% to 15.7% over our original 2024 forecasted Adjusted EPS-diluted.
- The company's revised forecast reflects strong operating trends and financial results from the first six months of 2024.
- The increased forecast indicates confidence in the company's ability to continue its growth trajectory.
Challenges Ahead
- The forecasted amounts exclude the impact of future items that are nonrecurring or non-operational in nature.
- The forecast is subject to conditions including those set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.
- A significant portion of the company's revenues are derived from federal and state government programs, which are subject to change.
- The increase in interest rates has substantially increased the company's borrowings costs and reduced its ability to access the capital markets on favorable terms.
- The outcome of known and unknown litigation, liabilities and other claims asserted against the company and/or its subsidiaries could have a material adverse effect.
Revenue & Expenses
Visualization of income flow from segment revenue to net income