UnitedHealth Group Inc. Earnings Cheat Sheet: Streak of Four Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component UnitedHealth Group Inc. (NYSE:UNH) reported its results 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the health care plans company fell to $1.27 billion ($1.17 per share) vs. $1.28 billion ($1.14 per share) a year earlier. This is a decline of 0.5% from the year earlier quarter.

Revenue: Rose 6.8% to $25.28 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UNH beat the mean analyst estimate of $1.12 per share. Analysts were expecting revenue of $25.45 billion.

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 12.8% from the year earlier, while the figure increased 13% in the first quarter, 10.5% in the fourth quarter of the last fiscal year and 23.4% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 21 cents in the second quarter, by 33 cents in the first quarter, and by 10 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.5% to $25.23 billion in the second quarter. The figure rose 9.7% in the first quarter from the year earlier and climbed 10.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 95 cents per share to 87 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $4.18 a share to $4.37 over the last ninety days.

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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