Unitedhealth Group Earnings: Here’s Why Shares are Down Now

Unitedhealth Group, Inc. (NYSE:UNH) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.27%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Unitedhealth Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.45% to $1.16 in the quarter versus EPS of $1.31 in the year-earlier quarter.

Revenue: Rose 11.06% to $30.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Unitedhealth Group, Inc. reported adjusted EPS income of $1.16 per share. By that measure, the company beat the mean analyst estimate of $1.14. It missed the average revenue estimate of $30.49 billion.

Quoting Management: Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group, said, This quarter provided a solid start to 2013 across our diversified health care businesses. UnitedHealthcare is achieving market-leading growth in health benefits, now including Amil and TRICARE, and is positioned to achieve one of its strongest-ever growth years. Looking forward, innovation and continuing discipline in advancing consistent care quality and medical and operating cost management will be critical to fulfilling the markets demands for greater health care value, as the pressures of reform and chronic under-reimbursement continue in federal programs serving seniors and individuals and families with lower incomes. At the same time, Optum is seeing accelerating growth and momentum as payers, care providers and other benefit sponsors respond to market pressures for lower costs, higher quality, greater transparency and increased productivity across our national health care system.

Key Stats (on next page)…

Revenue increased 5.32% from $28.77 billion in the previous quarter. EPS decreased 3.33% from $1.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.31 to a profit $1.3. For the current year, the average estimate has moved down from a profit of $5.55 to a profit of $5.51 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)