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Health and Healthcare

UnitedHealth Impresses Shareholders by Meeting Earnings

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By Chris Lange Updated Published
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UnitedHealth Impresses Shareholders by Meeting Earnings

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UnitedHealth Group Inc. (NYSE: UNH) released its fourth-quarter earnings report before the markets opened on Tuesday. The health insurance giant had $1.40 in earnings per share (EPS) on $43.6 billion in revenue, compared to Thomson Reuters consensus estimates of $1.38 in EPS on revenue of $43.23 billion. The same period from the previous year had $1.55 in EPS on $33.43 billion in revenue.

UnitedHealthcare repurchased 10.7 million shares for $1.2 billion in 2015, including 600,000 shares in the fourth quarter.

The company has grown to serve nearly 13.5 million more people, a 40% increase, over the past five years. Growth has been balanced across the commercial, government and international markets, and it reflects deliberate diversification and its strong market competitiveness.

In the fourth quarter, the company reported its business segments’ performance as:

  • Employer & Individual had revenues of $12.1 billion, an increase of 12% from the previous year.
  • Medicare & Retirement had revenues of $12.1 billion in the fourth quarter, an increase of 6%.
  • Community & State had revenues of $7.4 billion, which grew 14% from last year.
  • Global revenues grew 10% in the fourth quarter to $1.24 billion.

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Stephen J. Hemsley, CEO of UnitedHealth, commented on earnings:

The people of UnitedHealth Group are focused sharply on executing fully on 2016 commitments and delivering the highest quality experience for those we are privileged to serve. These efforts are reflected in continuing strong growth as we enter the new year.

Fourth-quarter cash flows were $3.5 billion, a strong 280% of net earnings. On the books, UnitedHealth has cash and short-term investments that total $12.9 billion, compared to $9.24 billion in the same period from the previous year.

Shares of UnitedHealth closed Friday down 1.4% at $109.27, with a consensus analyst price target of $142.57 and a 52-week trading range of $95.00 to $126.21. Following the release of the earnings report, the stock was up 0.8% at $110.16 in early trading indications Tuesday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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