UnitedHealth Earnings Good, but Not Exciting

Health and Healthcare

Published: January 17, 2013 7:35 am

Last Updated: April 28, 2020 8:56 am

UnitedHealth Group Inc. (NYSE: UNH) reported fourth-quarter and full-year 2012 results before markets opened this morning. The health insurance and benefits management firm reported diluted quarterly earnings per share (EPS) of $1.20 on revenues of $28.8 billion. In the same period a year ago, UnitedHealth reported EPS of $1.17 on net income of $25.9 billion. Today’s results also compare to the consensus estimates for EPS of $1.20 on revenues of $28.24 billion.

For the full year, UnitedHealth reported EPS of $5.28 on revenues of $110.6 billion. A year ago the company reported EPS of $4.73 on net income of $102.9 billion. The consensus estimate called for EPS of $5.27 on revenues of $109.94 billion.

The company’s CEO said:

In 2012 we continued to gain market share and broadened our revenue and earnings growth sources for the future by continuing to focus on ever-stronger execution on the fundamentals of serving our customers.

For 2013, the company forecasts revenues of $123 billion to $124 billion and EPS of $5.25 to $5.50.

The company grew its Medicare and retirement revenues by 12% year-over-year to $39.3 billion. Employer and individual insurance business grew 3% to $46.6 billion, and the company’s total Optum benefits management business grew 4.9% to $29.3 billion. UnitedHealth also purchased a 65% stake in the largest health insurer in Brazil during the year and plans to purchase another 25% in the first half of this year.

Shares are up about 0.6% in premarket trading this morning, at $54.00 in a 52-week range of $49.82 to $60.75. Thomson Reuters had a consensus analyst price target of around $66.10 before today’s results were announced.

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!