On July 24, 2024, Universal Health Services Inc (UHS, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Universal Health Services Inc owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The firm operates in two key segments: Acute Care Hospital Services and Behavioral Health Services.
Q2 2024 Financial Highlights
Universal Health Services Inc (UHS, Financial) reported a net income attributable to UHS of $289.2 million, or $4.26 per diluted share, for the second quarter of 2024. This represents a significant increase from the $171.3 million, or $2.42 per diluted share, reported in the same period of 2023. Net revenues for the quarter rose by 10.1% to $3.908 billion, compared to $3.548 billion in Q2 2023.
Adjusted net income attributable to UHS for Q2 2024 was $292.6 million, or $4.31 per diluted share, compared to $179.4 million, or $2.53 per diluted share, in Q2 2023. These results exceeded analyst estimates, which had projected earnings per share of $3.32 and revenue of $3.864 billion.
Segment Performance
In the Acute Care Hospital Services segment, adjusted admissions increased by 3.4% and adjusted patient days by 1.6% on a same-facility basis compared to Q2 2023. Net revenue per adjusted admission and per adjusted patient day increased by 3.5% and 5.3%, respectively. Overall, net revenues from acute care services grew by 6.6% year-over-year.
For the Behavioral Health Services segment, adjusted admissions decreased by 0.4%, while adjusted patient days increased by 1.4% on a same-facility basis. Net revenue per adjusted admission and per adjusted patient day saw significant increases of 11.2% and 9.3%, respectively. This led to an 11.0% increase in net revenues from behavioral health services compared to Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income Attributable to UHS | $289.2 million | $171.3 million |
| Diluted EPS | $4.26 | $2.42 |
| Net Revenues | $3.908 billion | $3.548 billion |
| Adjusted EBITDA net of NCI | $578.7 million | $425.9 million |
Cash Flow and Liquidity
Net cash provided by operating activities for the first six months of 2024 was $1.076 billion, a substantial increase from $654 million in the same period of 2023. As of June 30, 2024, UHS had $1.02 billion of aggregate available borrowing capacity under its $1.2 billion revolving credit facility.
Stock Repurchase Program and Revised Forecast
On July 24, 2024, UHS's Board of Directors authorized a $1.0 billion increase to the stock repurchase program, bringing the total available authorization to $1.228 billion. During Q2 2024, UHS repurchased 373,000 shares at an aggregate cost of approximately $70.0 million.
Based on the strong performance in the first half of 2024, UHS has raised its full-year forecast. The revised forecast estimates net revenues between $15.565 billion and $15.753 billion, adjusted EBITDA net of NCI between $2.154 billion and $2.226 billion, and adjusted EPS diluted between $15.40 and $16.20.
Conclusion
Universal Health Services Inc (UHS, Financial) has demonstrated robust financial performance in Q2 2024, exceeding analyst expectations and showing significant growth in both its Acute Care and Behavioral Health segments. The company's strong cash flow and increased stock repurchase authorization further underscore its financial health and commitment to shareholder value. Investors and stakeholders will be keenly watching how UHS continues to navigate the healthcare landscape in the coming quarters.
Explore the complete 8-K earnings release (here) from Universal Health Services Inc for further details.
