What to expect when UnitedHealth Group (UNH) reports earnings tomorrow

Shares of UnitedHealth Group Inc. (NYSE: UNH) were down 1% on Thursday. The stock has dropped 7% year-to-date. The company is set to report its fourth quarter 2022 earnings results tomorrow before market open. Here’s a look at what to expect:

Revenue

Analysts expect UnitedHealth to report revenues of $82.5 billion for the fourth quarter of 2022. This compares to $73.7 billion reported in the fourth quarter of 2021. In the third quarter of 2022, the company reported total revenues of $81 billion, which was up 12% year-over-year.

Earnings

Analysts expect earnings of $5.17 for UnitedHealth in Q4 2022 which compares to adjusted EPS of $4.48 reported in Q4 2021. In Q3 2022, the company delivered adjusted EPS of $5.79, which was up 28% YoY.

Segments

UnitedHealth’s top line performance in Q3 2022 was driven mainly by double-digit growth at its Optum and UnitedHealthcare segments. The UnitedHealthcare division saw revenue growth of 11% in Q3. Total people served domestically by UnitedHealthcare grew by 185,000 in the third quarter, led by the community-based and senior offerings.

During the third quarter, Optum posted revenue growth of 17%, which was led by Optum Health. Optum Health revenue increased 34% while revenue per customer served rose 31% YoY, driven by growth in value-based care arrangements and continued expansion of care delivery platforms. Optum Insight revenue grew 18% led by the growth of payer and provider services. Optum Rx’s revenue grew 8% in Q3. This momentum is likely to continue in the fourth quarter.

UnitedHealth has expanded its behavioral health network by 25% over the past couple of years, including a growing complement of behavioral clinical practices owned and operated by Optum. The company is expanding its portfolio of digital offerings that support a range of needs, thereby giving patients access to resources when they need them.

The company has been making improvements to its navigation tools to help customers access vital information and also guide them to appropriate, condition-specific aspects of behavioral health. These improvements could prove beneficial to the company by providing better service to customers and driving growth.

Click here to read the full transcript of UnitedHealth Group’s Q3 2022 earnings conference call