Analysts Have Made A Financial Statement On Universal Health Services, Inc.'s (NYSE:UHS) Full-Year Report

Shareholders might have noticed that Universal Health Services, Inc. (NYSE:UHS) filed its full-year result this time last week. The early response was not positive, with shares down 2.7% to US$175 in the past week. Universal Health Services reported US$16b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$16.82 beat expectations, being 4.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Universal Health Services

Taking into account the latest results, the consensus forecast from Universal Health Services' 16 analysts is for revenues of US$17.0b in 2025. This reflects a modest 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.4% to US$19.05. Before this earnings report, the analysts had been forecasting revenues of US$16.7b and earnings per share (EPS) of US$17.92 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$231, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Universal Health Services at US$280 per share, while the most bearish prices it at US$176. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.3% growth on an annualised basis. That is in line with its 6.9% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.1% per year. It's clear that while Universal Health Services' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Universal Health Services' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Universal Health Services going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Universal Health Services that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.