Universal Health Services Inc (UHS) Reports Solid Earnings Growth and Revenue Increase for Q4 ...
Net Income Growth: Q4 net income rose to $216.4 million, a 23.8% increase from the previous year.
Revenue Uplift: Full-year revenues climbed 6.6% to $14.282 billion in 2023.
Adjusted EBITDA Growth: Adjusted EBITDA net of NCI for 2023 increased to $1.742 billion, up from $1.662 billion in 2022.
Share Repurchase: UHS repurchased 3.86 million shares for approximately $524.5 million in 2023.
2024 Outlook: UHS forecasts net revenues between $15.411 billion and $15.706 billion and EPS-diluted between $13.00 and $14.00.
On February 27, 2024, Universal Health Services Inc (NYSE:UHS) released its 8-K filing, announcing financial results for the fourth quarter and full year of 2023. The company, which operates acute care hospitals, behavioral health centers, and ambulatory surgery centers, reported a net income of $216.4 million, or $3.16 per diluted share, for the fourth quarter of 2023, up from $174.8 million, or $2.43 per diluted share, in the same period of the previous year. Full-year net income also increased to $717.8 million, or $10.23 per diluted share, compared to $675.6 million, or $9.14 per diluted share, in 2022.
Universal Health Services Inc's net revenues saw a 7.4% increase to $3.704 billion in the fourth quarter of 2023, while full-year revenues grew by 6.6% to $14.282 billion. The company's performance reflects its robust operational strategy and the growing demand for healthcare services.
Financial Highlights and Challenges
The company's Acute Care Hospital Services segment reported a 9.7% increase in net revenues on a same-facility basis for the fourth quarter, while the Behavioral Health Care Services segment saw a 7.2% increase. Adjusted EBITDA net of NCI for the fourth quarter was $473.4 million, a slight increase from $471.7 million in the previous year. For the full year, Adjusted EBITDA net of NCI rose to $1.742 billion from $1.662 billion in 2022.
Despite these achievements, UHS faced challenges, including a nationwide shortage of clinical staff and support personnel, which required enhanced wages and benefits to recruit and retain staff. Additionally, the increase in interest rates has raised borrowing costs and could impact future operations if rates continue to rise.
Operational Performance and 2024 Forecast
Universal Health Services Inc's operational performance remained strong, with increases in adjusted admissions and patient days across both acute and behavioral health care services. The company's stock repurchase program also reflected confidence in its financial health, with significant shares repurchased throughout the year.
Looking ahead, UHS provided a positive forecast for 2024, with expected net revenues between $15.411 billion and $15.706 billion and an EPS-diluted range of $13.00 to $14.00 per share. The company anticipates Adjusted EBITDA net of NCI to be between $1.931 billion and $2.019 billion, representing a substantial increase over 2023.
Universal Health Services Inc's financial stability and growth prospects make it a noteworthy company for value investors, particularly in the Healthcare Providers & Services industry. The company's ability to navigate challenges while delivering financial growth is indicative of its strong market position and operational efficiency.
For more detailed information on Universal Health Services Inc's financial performance and future outlook, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Universal Health Services Inc for further details.
This article first appeared on GuruFocus.
