UnitedHealth Group Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component UnitedHealth Group Inc. (NYSE:UNH) reported net income above Wall Street’s expectations for the third quarter. UnitedHealth Group designs products, provides services and applies technologies that improve access to health and well-being services.

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UnitedHealth Group Inc. Earnings Cheat Sheet

Results: Net income for the medical-HMO rose to $1.56 billion ($1.50 per share) vs. $1.27 billion ($1.17 per share) in the same quarter a year earlier. This marks a rise of 22.7% from the year-earlier quarter.

Revenue: Rose 8% to $27.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: UnitedHealth Group Inc. beat the mean analyst estimate of $1.26 per share. Analysts were expecting revenue of $27.34 billion.

Quoting Management: Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group, said, “Our results were again well balanced across our business groups. We continue to focus on day-to-day execution on behalf of all those we serve throughout health care, while innovating and strengthening our products and services, and broadening our sources of growth, for the long term.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 5.5% and in the first quarter, the figure rose 3.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 15 cents in the first quarter, and by 15 cents in the fourth quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 8% to $27.27 billion in the second quarter. The figure rose 7.3% in the first quarter from the year earlier and climbed 7.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is $1.21 per share, dropping from $1.23 a month ago. For the fiscal year, the average estimate has moved up from $4.99 a share to $5.01 over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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