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Investing.com - Mizuho maintained its Outperform rating and $242.00 price target on Universal Health Services (NYSE:UHS), a $13.6 billion healthcare provider with a perfect Piotroski Score of 9 according to InvestingPro, following the company’s third-quarter 2025 results.
Universal Health Services reported third-quarter adjusted EBITDA that exceeded consensus estimates by 9%, according to Mizuho. However, this outperformance included a $90 million favorable impact from direct provider payments (DPPs).
When excluding the DPP impact, the healthcare provider’s adjusted EBITDA actually missed consensus estimates by 5%, Mizuho noted. The company’s updated 2025 EBITDA guidance, which includes the additional $90 million DPP benefit, represents a 4% increase at the midpoint but remains approximately flat when adjusted for the one-time payment.
In operational metrics, Universal Health Services reported a 2.0% year-over-year increase in acute care same-store adjusted admissions for the quarter, aligning with Mizuho’s survey expectations. Same-store behavioral health adjusted patient days rose 1.3% year-over-year.
Mizuho indicated the behavioral health metrics likely met investors’ reduced expectations for the segment, while maintaining its positive outlook on the stock with the Outperform rating.
In other recent news, Universal Health Services reported third-quarter earnings that significantly exceeded analyst expectations. The company posted adjusted earnings of $5.69 per share, surpassing the analyst consensus of $4.84. Revenue increased by 13.4% to $4.5 billion, exceeding the anticipated $4.34 billion. This strong performance was partly driven by a $90 million reimbursement from a newly approved Medicaid state-directed payment program in Washington, D.C. Additionally, Universal Health Services raised its full-year outlook, further boosting investor confidence. The improved guidance for fiscal year 2025 reflects strong revenue growth across both its acute care and behavioral health segments. These recent developments have prompted analysts to take note of the company’s robust financial health.
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