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Dec 31, 2023

UHS Q4 2023 Earnings Report

UHS's net income increased, driven by revenue growth in both acute care and behavioral health segments.

Key Takeaways

Universal Health Services, Inc. reported a net income attributable to UHS of $216.4 million, or $3.16 per diluted share, for the fourth quarter of 2023, compared to $174.8 million, or $2.43 per diluted share, for the fourth quarter of 2022. Net revenues increased by 7.4% to $3.704 billion during the fourth quarter of 2023, as compared to $3.447 billion during the fourth quarter of 2022.

Net revenues increased by 7.4% to $3.704 billion.

Net income attributable to UHS was $216.4 million, or $3.16 per diluted share.

Adjusted net income attributable to UHS was $214.9 million, or $3.13 per diluted share.

The company repurchased 1.13 million shares at an aggregate cost of approximately $157.3 million during the fourth quarter of 2023.

Total Revenue
$3.7B
Previous year: $3.45B
+7.4%
EPS
$3.13
Previous year: $3.02
+3.6%
Average Licensed Beds
6.67K
Previous year: 6.99K
-4.5%
Average Available Beds
6.5K
Previous year: 6.82K
-4.6%
Patient Days
403.12K
Previous year: 401.36K
+0.4%
Gross Profit
$331M
Previous year: $3.45B
-90.4%
Cash and Equivalents
$119M
Previous year: $103M
+16.2%
Free Cash Flow
$246M
Previous year: $133M
+85.2%
Total Assets
$14B
Previous year: $13.5B
+3.5%

UHS

UHS

UHS Revenue by Segment

Forward Guidance

UHS forecasts net revenues between $15.411 billion and $15.706 billion, Adjusted EBITDA net of NCI between $1.931 billion and $2.019 billion, and EPS-diluted between $13.00 and $14.00 per share for the year ending December 31, 2024.

Positive Outlook

  • Net revenues are estimated to increase by 7.9% to 10.0% over 2023 net revenues.
  • Adjusted EBITDA net of NCI is estimated to increase by 10.9% to 15.9% over 2023 Adjusted EBITDA net of NCI.
  • EPS-diluted is estimated to increase by 23.3% to 32.8% over 2023 adjusted net income attributable to UHS.
  • The 2024 operating results forecast includes approximately $158 million of net reimbursements expected to be earned pursuant to the Nevada State Directed Payment program.
  • Medicaid managed care component of the Nevada SDP was approved by CMS in late December 2023, with an effective date of January 1, 2024.

Challenges Ahead

  • The forecasted amounts exclude the impact of future items that are nonrecurring or non-operational in nature.
  • The Medicaid managed care component of the Nevada SDP requires annual approval by CMS and is subject to reconciliation.
  • There can be no assurance that the Medicaid managed care component of the Nevada SDP will continue for any period after December 31, 2024, or that it will not be modified.
  • The forecast is subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.
  • Capital expenditures are forecasted to be between $850 million and $1.000 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income