Why UnitedHealth Earnings Are Underwhelming

Health and Healthcare

Published: July 18, 2019 10:20 am

Last Updated: January 30, 2020 6:25 pm

UnitedHealth Group Inc. (NYSE: UNH) 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.

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.

24/7 Wall St.
SunTrust, Cautious on Semiconductors Due to Trade Issues, Has 4 Top Buys

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps