UL Solutions (NYSE:ULS) Shares Gap Up Following Strong Earnings

UL Solutions Inc. (NYSE:ULS)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $71.25, but opened at $74.89. UL Solutions shares last traded at $80.6950, with a volume of 697,678 shares trading hands.

The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.46 by $0.07. The company had revenue of $789.00 million during the quarter, compared to analysts’ expectations of $782.37 million. UL Solutions had a net margin of 11.29% and a return on equity of 34.49%. UL Solutions’s revenue was up 6.8% on a year-over-year basis. During the same period last year, the company posted $0.49 EPS.

UL Solutions Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be given a $0.145 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from UL Solutions’s previous quarterly dividend of $0.13. UL Solutions’s payout ratio is presently 31.14%.

Key Headlines Impacting UL Solutions

Here are the key news stories impacting UL Solutions this week:

• Positive Sentiment: Q4 results beat Wall Street: EPS and revenue topped estimates, showing organic growth and healthy margins — a direct catalyst for the stock rally. MarketBeat / Company Press Release
• Positive Sentiment: Dividend raise: Board increased the quarterly dividend to $0.145 (11.5% higher), signaling confidence in cash flow and returning more capital to shareholders — supportive for valuation and income investors. (Ex-dividend Mar 2; pay Mar 12.)
• Neutral Sentiment: Earnings call transcript available — provides color on end-market trends, margin drivers and capital allocation that investors will parse for forward guidance and sustainability of growth. Earnings Call Transcript
• Neutral Sentiment: Analyst/coverage notes and metric breakdowns published (Zacks, Yahoo, Investing.com) highlight the beat but also show modest YoY EPS uplift — investors will watch guidance and FY estimates for confirmation of sustained acceleration. Zacks: Key Metrics vs. Estimates

Wall Street Analysts Forecast Growth

ULS has been the subject of a number of recent research reports. Robert W. Baird set a $97.00 price objective on UL Solutions and gave the company an “outperform” rating in a research note on Wednesday, December 17th. Zacks Research lowered UL Solutions from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 29th. The Goldman Sachs Group increased their price objective on shares of UL Solutions from $69.00 to $79.00 and gave the company a “neutral” rating in a research report on Wednesday, November 5th. JPMorgan Chase & Co. restated a “neutral” rating and set a $84.00 price objective (up from $70.00) on shares of UL Solutions in a research note on Wednesday, November 5th. Finally, Bank of America began coverage on shares of UL Solutions in a research note on Tuesday. They issued a “buy” rating and a $86.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $83.88.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Parkside Financial Bank & Trust lifted its holdings in UL Solutions by 48.4% during the second quarter. Parkside Financial Bank & Trust now owns 524 shares of the company’s stock valued at $38,000 after purchasing an additional 171 shares in the last quarter. Assetmark Inc. purchased a new stake in shares of UL Solutions during the third quarter worth about $40,000. Northwestern Mutual Wealth Management Co. raised its stake in UL Solutions by 3,070.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock valued at $46,000 after purchasing an additional 614 shares during the period. Rhumbline Advisers purchased a new stake in UL Solutions during the 1st quarter valued at approximately $49,000. Finally, PNC Financial Services Group Inc. raised its position in shares of UL Solutions by 28.2% during the second quarter. PNC Financial Services Group Inc. now owns 731 shares of the company’s stock valued at $53,000 after buying an additional 161 shares during the last quarter.

UL Solutions Trading Up 15.8%

The company has a debt-to-equity ratio of 0.45, a current ratio of 1.33 and a quick ratio of 1.33. The stock has a market cap of $16.57 billion, a P/E ratio of 49.39, a price-to-earnings-growth ratio of 3.96 and a beta of 1.11. The stock’s 50-day moving average is $76.01 and its two-hundred day moving average is $74.99.

UL Solutions Company Profile

UL Solutions (NYSE: ULS) is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters’ Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company’s core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.