UnitedHealth Group, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component UnitedHealth Group, Inc. (NYSE:UNH) will unveil its latest earnings on Tuesday, July 19, 2011. UnitedHealth Group, Inc. designs products, provides services and applies technologies that improve access to health and well-being services.

UnitedHealth Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 94 cents per share, a decline of 5.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 92 cents. Between one and three months ago, the average estimate was unchanged, but has risen during the last month. For the year, analysts are projecting net income of $4.18 per share, a rise of 2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 33 cents, reporting profit of $1.22 per share against a mean estimate of net income of 89 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $25.22 billion in revenue this quarter, a rise of 8.4% from the year ago quarter. Analysts are forecasting total revenue of $101.49 billion for the year, a rise of 7.8% from last year’s revenue of $94.16 billion.

Analyst Ratings: Analysts are bullish on this stock with 18 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 13% while it rose 10.5% in the fourth quarter of the last fiscal year and 23.4% 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 first quarter. The figure rose 10.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 9.1% in the third quarter of the last fiscal year from the year-ago quarter and 7.4% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had risen $6.90 (15.4%) from $44.83 to $51.73. Shares have been on a negative streak of late, closing down every day between July 11, 2011 and July 13, 2011. The stock price saw one of its best stretches over the last year between April 1, 2011, and April 11, 2011, when shares rose for seven-straight days, rising 2.9% (+$1.29) over that span. Shares are up $15.84 (+44.1%) year to date.

(Source: Xignite Financials)

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