UnitedHealth Trims FY24 Earnings View Even As Q3 Beats Market; Stock Down - Update

UnitedHealth

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(RTTNews) - UnitedHealth Group Inc. (UNH), while reporting higher third-quarter results, on Tuesday trimmed its earnings outlook for fiscal 2024 on a reported basis, and lowered the top end of adjusted earnings view. In its third quarter, Unitedhealth's profit increased from the same period last year and beat the Street estimates, with higher revenues.

In pre-market activity on the NYSE, UnitedHealth shares were losing around 3.7 percent to trade at $583.00.

Outlook

The health care and well-being company now said it expects fiscal 2024 net earnings of $14.38 billion to $14.65 billion or $15.50 to $15.75 per share, reflecting the South America operations disposition activities reported in the first half of 2024 and Change Healthcare cyberattack impacts.

The company previously expected earnings of $15.95 to $16.40 per share for the year.

On an adjusted basis, the company now projects earnings of $25.48 billion to $25.75 billion, or $27.50 to $27.75 per share. The company's previous outlook, established at November 2023 Investor Conference, was adjusted net earnings of $27.50 to $28.00 per share.

Analysts on average expect the company to earn $27.7 per share for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

UnitedHealth said the outlook absorbs an estimated $0.75 per share of business disruption impacts for the affected Change Healthcare services, which have increased around $0.10 per share from the estimate provided last quarter.

Q3 Results

In its third quarter, Unitedhealth's earnings totaled $6.055 billion, or $6.51 per share. This compares with $5.841 billion, or $6.24 per share, in last year's third quarter.

Adjusted earnings were $6.651 billion or $7.15 per share for the period, compared to $6.137 billion or $6.56 per share last year. Analysts had expected the company to earn $7.00 per share.

The company's revenue for the quarter rose 9.2 percent to $100.820 billion from $92.361 billion last year, led by strong expansion in people served at Optum and UnitedHealthcare.

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