KING OF PRUSSIA, PA — Universal Health Services, Inc. (NYSE: UHS), a prominent player in healthcare services in the U.S., has posted its financial results for the first quarter of 2024. The company has reported a marked increase in net income to $261.8 million from $163.1 million in the same period last year, a surge of 60.4%. The net revenues for the quarter also saw a considerable uptick, rising by 10.8% to $3.844 billion.
The earnings per share (EPS) for Q1 2024 stood at $3.82, a substantial rise from the $2.28 EPS noted in Q1 2023. The company’s adjusted net income, another crucial financial indicator, was pegged at $253.1 million, which translates to an adjusted EPS of $3.70, compared to $167.6 million or $2.34 EPS for Q1 2023.
The report further highlighted certain financial components which played a key role in the 2024 first-quarter results. Notably, a $9.2 million tax benefit which came as a result of employee share-based payments positively impacted the company’s after-tax earnings. However, an unrealized loss was recorded as well due to a dip in the market value of some equity securities, amounting to an after-tax loss of $0.4 million.
Universal Health Services also reported its earnings before interest, taxes, depreciation & amortization (EBITDA), standing at $525.9 million for Q1 2024, up from $407.3 million in Q1 2023. The company’s adjusted EBITDA, which doesn’t take into account other income or expense, was marginally lower at $525.8 million.
An in-depth analysis of the company’s Acute Care and Behavioral Health Care services revealed interesting trends. Adjusted admissions for acute care hospitals were up by 4.5% while revenue per patient increased by about 5%, contributing to a 9.6% increase in net revenues. In contrast, behavioral health care facilities saw a minor decline in admissions by 0.8%, but an increase of 8-11% in revenue per patient led to a 10.4% revenue boost.
In terms of operating cash flow, the company generated $396 million in Q1 2024, recording a striking $106 million increase from the same period in 2023. The company also reported a sizable $733 million in available borrowing capacity as of March 2024, a positive sign for the company’s liquidity situation.
Continuing its stock repurchase program, Universal Health Services bought back 700,000 shares at a cost of about $125.1 million during the first quarter, with an additional repurchase authorization of approximately $298 million available as of the end of March 2024.
In conclusion, the first quarter of 2024 appears to have been a period of robust growth for Universal Health Services. With a solid income rise, strong gains in both acute care and behavioral health care services and a positive cash flow, the company has set a promising tone for the rest of the fiscal year.
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