Why UnitedHealth Earnings Are Underwhelming
UnitedHealth reported its second-quarter financial results before the markets opened on Thursday.
UnitedHealth Group Inc. (NYSE: UNH | UNH Price Prediction) reported its second-quarter financial results before the markets opened on Thursday. The firm said that it had $3.60 in earnings per share (EPS) and $60.6 billion in revenue. That compared with consensus estimates of $3.45 in EPS and $60.59 billion in revenue, as well as the $3.14 per share and $56.09 billion posted in the same period of last year.
During the latest quarter, revenues grew 8.0% year over year to $60.6 billion, led by double-digit percentage revenue growth at UnitedHealthcare Medicare & Retirement, OptumRx and OptumHealth.
Looking ahead to the full year, the company expects to see EPS in the range of $14.70 to $14.90. Consensus estimates call for $14.70 in EPS and $244.27 billion in revenue for the year.
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David S. Wichmann, CEO of UnitedHealth, commented:
Our results in the quarter reflect strong and balanced performance from both Optum and UnitedHealthcare and are driven by the 320,000 women and men of UnitedHealth Group who focus every day on creating value for those we serve.
Shares of UnitedHealth traded down over 1% at $262.49 on Thursday, in a 52-week range of $208.07 to $287.94. The consensus price target is $290.91.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
