The company is likely to benefit from its investments in growth initiatives and strategic acquisitions. The efficient management of medical costs is also likely to help the quarterly results. Investments in artificial intelligence and other technologies are gaining prominence in the health industry.
In the second quarter of 2019, UnitedHealth Group beat market expectations for earnings while revenues were in line with estimates. Total revenues grew 8% year-over-year to $60.6 billion and adjusted EPS improved by 15% to $3.60. Revenue results were driven by double-digit growth at UnitedHealthcare Medicare & Retirement, OptumRx and OptumHealth. Revenues grew 6% in the UnitedHealthcare segment and 13% in the Optum segment.
For fiscal year
2019, UnitedHealth expects GAAP EPS of $13.95-14.15 and adjusted EPS of
$14.70-14.90.
Shares of UnitedHealth have fallen over 10% year-to-date. However, the majority of analysts have rated the stock as Buy and it has an average price target of $290.62.