UnitedHealth Group Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

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

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UnitedHealth Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for UnitedHealth Group Inc. rose to $1.27 billion ($1.16 per share) vs. $1.12 billion (99 cents per share) in the same quarter a year earlier. This marks a rise of 12.8% from the year earlier quarter.

Revenue: Rose 8.5% to $25.23 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UNH beat the mean analyst estimate of 94 cents per share. Analysts were expecting revenue of $25.25 billion.

Quoting Management: Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group, said, “We draw on competencies in clinical insight, advanced technology and health information management to achieve a range of solutions for a diversity of customers and market segments through our UnitedHealthcare and Optum businesses. We are achieving strong and consistent growth as customers respond to our focus on consistent fundamental execution and solutions-oriented innovation around their needs.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 13% and in the fourth quarter of the last fiscal year, the figure rose 10.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 33 cents in the first quarter, by 10 cents in the fourth quarter of the last fiscal year, and by 30 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.7% to $25.43 billion in the first quarter. The figure rose 10.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.1% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Aetna Inc. (NYSE:AET), Health Net, Inc. (NYSE:HNT), Coventry Health Care, Inc. (NYSE:CVH), Humana Inc. (NYSE:HUM), WellPoint, Inc. (NYSE:WLP), CIGNA Corporation (NYSE:CI), WellCare Health Plans, Inc. (NYSE:WCG), Universal American Corp. (NYSE:UAM), Centene Corporation (NYSE:CNC), and HealthSpring, Inc (NYSE:HS).

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(Source: Xignite Financials)

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