Hospital operator Universal Health Services, Inc. UHS is set to report fourth-quarter 2024 results on Feb. 26, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.19 per share on revenues of $3.99 billion. 

See the Zacks Earnings Calendar to stay ahead of market-making news.

The fourth-quarter earnings estimate increased by a penny over the past week. The bottom-line projection indicates a year-over-year increase of 33.9%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 7.9%.

Image Source: Zacks Investment Research

Universal Health beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 12.1%. This is depicted in the figure below.

Q4 Earnings Whispers for UHS

Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

Although UHS has an Earnings ESP of +2.03%, it has a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping UHS’ Q4 Results?

Universal Health's top line is likely to have been boosted by strong contributions from its Acute Care Hospital Services and Behavioral Health Care Services segments. The Acute Care Hospital Services unit is expected to have benefited from an increase in adjusted admissions and higher net revenue per adjusted admission.

The Zacks Consensus Estimate for net revenues in the Acute Care Hospital Services segment is pegged at $2.26 billion, indicating 8.2% year-over-year growth. While the consensus mark for the unit’s same-facility adjusted admissions indicates 2.8% growth from the prior-year quarter, our model estimate suggests a 2.6% increase.

The Behavioral Health Care Services segment is likely to have been supported by sustained demand for mental health services as the prevalence of mental health issues among Americans continues. Additionally, the segment's performance is expected to have been aided by growth in adjusted patient days and revenue per adjusted patient day. 

The Zacks Consensus Estimate for net revenues in the Behavioral Health Care Services segment is pegged at $1.74 billion, indicating a 7.6% increase from the prior-year quarter. We estimate the metric to improve 7.2% year over year. Our estimate for the unit’s adjusted patient days indicates a year-over-year increase of around 5%.

The factors stated above are likely to have positioned the company for year-over-year growth. However, Universal Health’s margins are likely to have faced pressure from rising overall expenses, particularly due to higher salaries, wages and benefits, as well as increased costs for supplies in the fourth quarter, making an earnings beat uncertain. We anticipate salaries, wages and benefits to increase 4.3% year over year, while supplies expenses are expected to escalate 1.2%.

How Did Other Stocks Perform?

Here are some stocks in the broader Medical space that have already reported earnings for this quarter: HCA Healthcare, Inc. HCA, The Ensign Group, Inc. ENSG and The Cigna Group CI.

HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven byhigher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.

Ensign reported fourth-quarter 2024 adjusted earnings per share of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and higher skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents. 

Cigna reported fourth-quarter 2024 adjusted earnings per share of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Universal Health Services, Inc. (UHS) : Free Stock Analysis Report

Cigna Group (CI) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research