Categories AlphaGraphs, Analysis, Health Care

UnitedHealth (UNH) Q4 earnings preview: Get ready for another good show

UnitedHealth Group (NYSE: UNH) has been expanding its market value steadily, especially after reporting stronger-than-expected third-quarter results a few months ago. Since then, the stock gathered steam and reached an all-time high ahead of the fourth-quarter report, which will be released on January 15 before the opening bell.

UnitedHealth Group’s (UNH) Q3 results surpass expectations

The majority of the analysts have assigned the stock buy rating, which has gained 19% in the past twelve months. However, the shares underperformed the industry during that period.

Estimate

It is estimated that the healthcare conglomerate ended the fiscal year on an impressive note, with earnings climbing 15% to $3.28 per share. The bottom-line growth reflects a 5% increase in revenues to $61.06 billion. Earnings topped Wall Street’s expectations in each of the previous three quarters – a trend that is expected to continue.

Also see: CVS Health builds on its strong growth in Q3

The company’s health benefits segment UnitedHealthcare continues to gain from the steady expansion of the Medicare and Medicaid businesses, helped mainly by the popularity of the Medicare Advantage program. Optum, the platform that helped UnitedHealth emerge from a health insurance company into a full-fledged healthcare provider, has contributed consistently to the top-line while expanding its portfolio through strategic acquisitions.

Fingers Crossed

Meanwhile, investors might remain cautious due to uncertainties related to the government’s move to reform the healthcare system and proposal for the Medicare-For-All scheme. Healthcare plans are expected to witness significant changes after the upcoming presidential election. In the long term, the sentiment should turn positive, given the firm’s strong fundamentals. Going ahead, margins at the Medicare business might come under pressure from the introduction of health insurance tax.

Peer Performance

Among the other healthcare firms, Humana Inc. (HUM) reported better-than-expected earnings and revenues for its most recent quarter, supported by a strong uptick in the Medicare Advantage business. The management also revised up its full-year guidance.

Related: UnitedHealth Q3 2019 Earnings Conference Call Transcript

Earlier, UnitedHealth’s stronger-than-expected third-quarter results brought cheer to shareholders. Earnings moved up 14% annually to $3.88 per share, aided by a 7% growth in revenues to %60.4 billion. The top-line benefited from strong performance by Optum and continued increase in Medicare Advantage membership.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

Key highlights from Box (BOX) Q4 2021 earnings results

Box Inc. (NYSE: BOX) reported fourth quarter 2021 earnings results today. Revenues rose 8% year-over-year to $198.9 million. GAAP net loss was $4.9 million, or $0.03 per share, compared to

Infographic: Highlights of Hewlett Packard’s (HPE) Q1 2021 earnings report

Technology firm Hewlett Packard Enterprise Company (NYSE: HPE) reported higher earnings for the first quarter of 2021, despite a decrease in revenues. The numbers surpassed the consensus forecast. First-quarter earnings,

MercadoLibre (MELI): Here is a stock to have on your investment radar

MercadoLibre Inc. (NASDAQ: MELI) is one of the stocks that benefited from the COVID-19 pandemic. The Argentine ecommerce company has caught the attention of market experts as it garnered growth

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top