UnitedHealth: Most Recent Quarterly Results and Expectations

UnitedHealth (NYSE:UNH) will release its results before the market opens on Tuesday. Here’s what you need to know.

In the last quarter, UnitedHealth reported revenues of $111.6 billion, marking a 12.9% year-over-year increase, meeting analysts' revenue expectations. However, it was a particularly weak quarter for the company; earnings per share (EPS) estimates were significantly missed, and the company lost a total of 40,000 customers. The number of customers closed at 54.08 million.

As we approach the earnings report, is UnitedHealth offering a buy or sell recommendation on its stock? You can access our full analysis for free with your active Edge membership.

For this quarter, analysts expect UnitedHealth’s revenue to reach $113.3 billion, reflecting a 12.4% year-over-year increase. This is anticipated to be a significant improvement over last year’s 9.2% growth recorded in the same quarter. Adjusted earnings per share estimates are projected at $2.81.

Over the last 30 days, analysts covering the company have generally reiterated their forecasts, expecting UnitedHealth to remain on track as it heads into the earnings report. Over the past two years, UnitedHealth has failed to meet Wall Street's revenue forecasts four times.

Considering peers in the healthcare and service provider segment, some have begun to report third-quarter results, which provide clues to our expectations. Elevance Health met analysts' expectations with an 11% year-over-year revenue increase, while Molina Healthcare outperformed forecasts with an 11% increase, exceeding estimates by 4.7%. Following the results, Elevance Health saw a 2.5% decline, while Molina Healthcare lost 17.3% in value.

In the past month, a positive sentiment among investors has been observed across the healthcare sector, with average stock prices rising by 7.6%. During this period, UnitedHealth's stock price increased by 5.4%, moving towards the analysts' average price target of $368.56. The current stock price is $363.74.

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