Prussia, Pennsylvania-based Universal Health Services, Inc. (UHS) owns and operates acute care hospitals, and outpatient and behavioral health care facilities. With a market cap of $15.3 billion, the company provides acute care hospitals, behavioral health, and surgery centers. It provides services such as general surgery, internal medicine, radiology, and pediatric services. The health care giant is expected to announce its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 23.

Ahead of the event, analysts expect UHS to report a profit of $3.78 per share on a diluted basis, up 48.2% from $2.55 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect UHS to report EPS of $15.91, up 51% from $10.54 in fiscal 2023. Its EPS is expected to rise 9.7% year over year to $17.45 in fiscal 2025. 

UHS stock has outperformed the S&P 500’s ($SPX) 33.1% gains over the past 52 weeks, with shares up 78.7% during this period. Similarly, it outshined the Health Care Select Sector SPDR Fund’s (XLV) 19% gains over the same time frame.

UHS has excelled due to increased patient volumes, higher revenue per patient, and effective cost management strategies that have boosted profit margins. The company's expansion in licensed bed capacity in its Acute Care and Behavioral Health segments have driven revenue growth. Additionally, strategic acquisitions have played a key role in expanding its portfolio of facilities. 

On Jul. 24, UHS shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $4.31 surpassed Wall Street expectations of $3.37. The company’s revenue was $3.91 billion, beating Wall Street forecasts of $3.85 billion.

Analysts’ consensus opinion on UHS stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, and seven give a “Hold.” UHS’ average analyst price target is $240.60, indicating a potential upside of 7.1% from the current levels.

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