UnitedHealth group Inc. (UNH), the bellwether of health insurance companies, has a strong presence in the sector and his among the top five companies in the industry. This Minneapolis-based company is well known for its diversified business profile providing an array of well-being services to people through all stages of life.
Despite some misgivings brought along with the health care reform act, the company has been a net gainer from the regulation. It stands apart from its peers as it has focused on growing the less regulated business that is the health services segment named as Optum. Optum is like a jewel in the crown for the company and is expected to make increasing contribution to the group’s overall revenues going forward.
The company is also expanding its presence on online exchanges, aggressively forming Accountable Care Organizations and expanding its business beyond national boundaries. These developments should bode well for the group’s earnings.
UnitedHealth has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 6.1%.
Currently, UnitedHealth has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: UnitedHealth beat on first quarter earnings by 13 cents per share. Our consensus called for EPS of $1.33, and the company reported EPS of $1.46.
Revenues Beat: Revenues, also came in ahead of expectations. UnitedHealth posted revenues of $35.8 billion, compared to our consensus estimate of $34.7 billion.
Key Stats: The company reported first quarter medical care ratio of 81.1% down 140 basis points year-over-year.
Revenues from the company’s health care segment came in at $32.6 billion up 12% year over year while the other segment – Optum posted revenue of $12.8 billion up 15% year over year.
The company’s Medical membership increased to 45.8 million up from 44.7 million in the last year quarter.
UnitedHealth Upped guidance for 2015 – The insurer expects 2015 revenues of approximately $143 billion, an increase of $2 billion from the previous outlook, due to stronger business growth in the first quarter. Earnings are now expected to be in a range of $6.15 to $6.30 per share, an increase from the prior outlook of $6.00 to $6.25 per share, The Zacks Consensus Estimate currently stands at $6.20 per share.
Check back later for our full write up on this UnitedHealth earnings report later!
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