What to expect when UnitedHealth Group (UNH) reports Q1 2023 earnings

Shares of UnitedHealth Group Inc. (NYSE: UNH) stayed green on Wednesday. The stock has gained nearly 6% over the past three months. The company is slated to report its first quarter 2023 earnings report on Friday, April 14, before market open. Here’s what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $89.7 billion for UnitedHealth Group in the first quarter of 2023, which represents a 12% growth from the same period a year ago. In the fourth quarter of 2022, revenue increased 12% year-over-year to $82.8 billion.

Earnings

The consensus estimate is for EPS of $6.13 in Q1 2023, which compares to EPS of $5.49 reported in Q1 2022. In Q4 2022, adjusted EPS rose 19% YoY to $5.34.

Points to note

UnitedHealth Group’s revenues in the fourth quarter of 2022 grew double-digits, helped by increases in premiums, products and services. The company also saw double-digit revenue growth in both its segments – UnitedHealthcare and Optum during the quarter.

UnitedHealthcare benefited from a growth in the number of people served, which was driven by community-based and senior offerings. Optum’s revenue increased 17% in Q4, helped by momentum in Optum Health, which saw a 29% increase in revenue per consumer served. The company expects to continue to benefit from an increase in the number of people participating in value-based care provided by Optum Health.

Another growth area is pharmacy, where the company engages 1 million people every day. On its Q4 conference call, UnitedHealth Group said it expects to have over 750 community pharmacies by the end of 2023.

The company’s development of its in-home clinical capabilities continues to complement its clinic-based and digital offerings and has been beneficial to patients. Its investments in offerings for seniors and in health technology are expected to drive meaningful growth in the long term.