UnitedHealth beats quarterly profit, raises earnings forecast
Reuters
Published Oct 15, 2019 06:43AM ET
UnitedHealth beats quarterly profit, raises earnings forecast
(Reuters) - UnitedHealth Group Inc (N:UNH) beat analysts' estimates for quarterly profit and raised its 2019 earnings forecast on Tuesday, benefiting from strength in its core business of selling health plans and its pharmacy benefits unit.
Shares of the largest U.S. health insurer rose 2% in light premarket trading.
UnitedHealth raised its full-year adjusted earnings forecast to between $14.90 to $15 per share, from an earlier forecast of between $14.70 and $14.90.
Revenue from the health insurance business rose 4.7% to $48.11 billion in the third quarter, while Optum, which includes the pharmacy benefits business, saw a 13.3% jump to $28.76 billion.
The company's medical care ratio, or the percentage of premiums paid out for medical services, was 82.4% for the quarter, worsening from 81% last year, but in line with the average analyst estimate.
Excluding items, UnitedHealth earned $3.88 per share, beating the average analyst estimate of $3.75, according to IBES data from Refinitiv.
Net earnings attributable to shareholders rose to $3.54 billion, or $3.67 per share, in the three months ended Sept. 30, from $3.19 billion, or $3.24 per share, a year earlier.
Total revenue rose 6.7% to $60.35 billion, beating estimates of $59.79 billion.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.