How did UHS outperform forecasts in Q4 2024?

Universal Health Services (UHS) outperformed forecasts in Q4 2024 primarily due to higher net income and favorable changes in working capital accounts, as evidenced by the company's strong financial performance and operational efficiency. This was driven by a combination of factors including:

1. Revenue Growth: UHS reported a total revenue of $4.11 billion for Q4 2024, which included a revenue surprise of $100 million. This exceeded analysts' expectations by 1.6%, reporting revenues of $3.96 billion. Such growth is indicative of the company's ability to generate higher revenues than anticipated.

UHS Revenue Surprise, Total Revenue

2. Patient Admissions and Services: Increased patient admissions, particularly for non-urgent procedures, led to higher revenues. The resumption of elective procedures, which had been delayed due to the COVID-19 pandemic, also contributed to the revenue growth.
3. Cost Management: Despite increased operating expenses due to higher salaries, wages, and benefits, other operating expenses, and supplies costs, the company's financial performance was bolstered by effective cost management, leading to higher net income.
4. Portfolio Expansion and Market Position: UHS's strategic expansions, such as opening new hospitals and expanding its treatment network, have fueled top-line growth. The company's diversified healthcare services and robust operational network have also contributed to its strong financial performance.

In summary, UHS's outperformance in Q4 2024 can be attributed to a combination of revenue growth from increased patient admissions and services, effective cost management, and strategic expansions. These factors collectively enabled the company to surpass market expectations and deliver robust financial results.