LONDON, UK / ACCESSWIRE / October 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on UnitedHealth Group Inc. (NYSE: UNH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UNH, following the Company's announcement of its third quarter fiscal 2017 operating results on October 17, 2017. The largest US health insurer smashed past earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the three months ended September 30, 2017, UnitedHealth Group's revenues were $50.32 billion, growing 8.7% compared to revenue of $46.29 billion in Q3 2016. The Company stated that UnitedHealthcare's Affordable Care Act (ACA) Individual market withdrawals combined with the ACA health insurance tax deferral reduced consolidated revenues by approximately $1.6 billion on a y-o-y basis, thus lowering consolidated revenue growth rate for the reported quarter by 4%. UnitedHealth Group's revenue numbers fell short of analysts' estimates of $50.37 billion.

UnitedHealth Group's earnings from operations grew 14.2% to $4.09 billion on a y-o-y basis in Q3 2017 compared to $3.58 billion in Q3 2016.

For Q3 2017, UnitedHealth Group's net earnings totaled $2.56 billion compared to $1.98 billion for Q3 2016. On a per-share basis, the Company's earnings grew 24% to $2.51 per share from $2.03 per share in the year ago same period, and adjusted net earnings jumped 23% to $2.66 per share from $2.17 per share in Q3 2016 and also exceeded Wall Street's earnings expectation of $2.56 per share.

UnitedHealth's Segment Results

UnitedHealthcare

During Q3 2017, the Company's UnitedHealthcare segment's revenues grew 9.6% to $40.7 billion y-o-y from $37.2 billion in Q3 2016. For Q3 2017, UnitedHealthcare's earnings from operations were $2.4 billion, advancing 13.2% on a y-o-y basis from earnings of operations of $2.1 billion, driven by strong, diversified revenue growth, and improved operating margins.

For Q3 2017, UnitedHealthcare Employer & Individual revenues of $13.1 billion declined $197 million on a y-o-y basis due to the effects of ACA Individual market withdrawals and health insurance tax deferral. In the reported quarter, commercial risk-based group business grew by 40,000 people, while fee-based programs decreased by 500,000 people due to non-renewal of one public sector customer.

In Q3 2017, UnitedHealthcare Medicare & Retirement unit's revenue rose 17.1% to $16.3 billion on a y-o-y basis. UnitedHealthcare served 8.8 million seniors with medical benefit products at the end of the reported quarter, reflecting growth of 960,000 people, or 12.2%, on a y-o-y basis.

During Q3 2017, UnitedHealthcare's Community & State revenues were $9.4 billion, growing 12.8% on a y-o-y basis, reflecting strong membership growth and service to an increasing mix of individuals with greater health care needs. In the reported quarter, Community & State served 585,000 more people on a y-o-y basis, reflecting an increase of 10.1%.

Optum

During Q3 2017, UnitedHealthcare Group's Optum segment revenues grew 8.4% to $22.9 billion on a y-o-y basis compared to revenue of $21.1 billion in Q3 2016. Optum's reported quarterly earnings from operations grew 15.7% to $1.7 billion on a y-o-y basis, with double-digit percentage improvements for all reporting segments led by a 27% advance at OptumHealth, while the segment's operating margins improved 50 basis points to 7.4% y-o-y.

During Q3 2017, OptumHealth's revenues surged 21.2% to $5.3 billion on a y-o-y basis, driven by growth and market expansion in care delivery as well as growth in consumer health engagement products and services, behavioral health services, and health financial services. OptumHealth's average revenue per consumer increased 9.1% y-o-y, driven by the growth in care delivery.

OptumInsight's revenues totaled $2 billion in Q3 2017, reflecting growth of 9.8% on a y-o-y basis, driven by growth in business process management services and data analytics. OptumInsight's contract backlog grew by one-half billion dollars to $13.9 billion in the reported quarter.

OptumRx's revenues grew 4.7% to $16.0 billion on a y-o-y basis in Q3 2017. OptumRx fulfilled more than 320 million adjusted scripts in the reported quarter, representing an increase of 12 million scripts or nearly 4% over the prior year.

Operating Results

During Q3 2017, UnitedHealthcare Group's consolidated medical care ratio of 81.4% grew 110 basis points y-o-y, as an increase of 140 basis points from the health insurance tax deferral was partially offset by higher levels of favorable reserve development. The Company's Medical reserves developed favorably by $310 million in the reported quarter compared to $120 million in development in the year-ago same period.

UnitedHealthcare Group's Q3 2017 operating cost ratio of 14.7% declined 50 basis points y-o-y, as business mix partially offset 90 basis points decrease from the health insurance tax deferral. The Company's reported quarter days claims payable of 51 days decreased one day on a y-o-y basis, while days sales outstanding increased 1day y-o-y to 16 days.

Financial Results

UnitedHealthcare Group's cash flows from operations of $7.5 billion in Q3 2017 were 2.9 times net earnings. The Company's Annualized return on shareholders' equity increased 120 basis points y-o-y to 22.5% in the reported quarter, while the debt to total capital ratio decreased to 38.2% at September 30, 2017.

UnitedHealthcare Group's Dividends paid to shareholders in Q3 20177 grew 22% y-o-y to $726 million, reflecting a 20% raise in the annual dividend payment rate to $3.00 per share in June 2017. At September 30, 2017, the Company had repurchased 7.1 million shares year-to-date for $1.17 billion, including 660,000 shares in Q3 2017.

Stock Performance

At the closing bell, on Wednesday, October 18, 2017, UnitedHealth's stock marginally rose 0.66%, ending the trading session at $205.23. A total volume of 4.80 million shares have exchanged hands, which was higher than the 3-month average volume of 2.83 million shares. The Company's stock price skyrocketed 7.17% in the last three months, 19.64% in the past six months, and 43.13% in the previous twelve months. Moreover, the stock surged 28.24% since the start of the year. The stock is trading at a PE ratio of 24.68 and has a dividend yield of 1.46%. The stock currently has a market cap of $198.84 billion.

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