UnitedHealth Group, Inc. (NYSE: UNH) reported second quarter revenues and earnings and it appears that the world of healthcare insurance is not being killed yet by “reform.” Revenues increased 8 per cent year-over-year at $23.7 billion versus analysts’ expectations of $25.3 billion. The company posted earnings of $1.16 per share handily beating analysts’ estimates of $0.91 per share.
The second quarter 2011 medical care ratio was 81.4 percent, a drop of 10 basis points year-over-year.
Based on its second quarter results, the company updated guidance for the year. UnitedHealth now forecasts 2011 revenues of $101 billion and net earnings in the range of $4.15 to $4.25 per share. Both revenue and earnings guidance were largely in line with prior consensus estimates of $101.5 billion for revenues and earnings of $4.17 per share.
The shares recently closed at $51.95 and shares have fluctuated from up marginally to down marginally in pre-market trading. The 52-week price range is $29.55 to $53.50.