Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  UnitedHealth Group Inc    UNH

Delayed Quote. Delayed  - 09/28 10:00:41 pm
140.41 USD   -0.27%
09/28 UNITEDHEALTH : UnitedHealthcare and Optum Support People Affected by..
09/28 UNITEDHEALTH : New Report Highlights New Level of Detail in Wide Var..
09/28 UNITEDHEALTH : New Report Highlights New Level of Detail in Wide Var..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

UnitedHealth Earnings Slip, But Revenue Climbs

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/17/2013 | 03:08pm CEST

--Earnings down slightly on fewer excess reserves

--EPS still tops Street, but not by wide margins as in recent quarters

--Company cites good full-year cost trend for commercial business

(Updates throughout with details on results, analyst comment.)

 
   By Jon Kamp 
 

UnitedHealth Group Inc.'s (>> UnitedHealth Group Inc.) fourth-quarter earnings slipped slightly as the health insurer benefited less from excess reserves set aside to cover member costs. Revenue, though, surged on growing membership, and the company saw improved profits in its big health-services business.

The Minnetonka, Minn., company squeaked in ahead of Wall Street's per-share earnings expectations for the quarter, although not by the same margin as in recent quarters. Shares slipped 1.2% to $53 in premarket trading Thursday.

Analysts still said it was a good quarter for the industry bellwether, the largest managed-care company by revenue and typically the first to report quarterly results.

The "results look quite solid even though lacking the upside of prior [UnitedHealth] quarters" last year, Goldman Sachs analyst Matthew Borsch said.

UnitedHealth--which has taken a cautious view of potential pressure points this year, such as the still-weak economy--backed the 2013 financial guidance it issued in late November.

The company also noted a potentially good development regarding medical costs for its big commercial health-insurance business: Full-year costs trend rose less than expected.

Still, UnitedHealth's consolidated medical-care ratio, which reflects the portion of insurance premiums used for patient care, increased to 80.5% in the fourth quarter from 79.7% a year earlier. The increase reflects the smaller level of excess reserves. When patients rack up fewer bills than expected, the extra money set aide to cover costs benefits earnings.

UnitedHealth reported a profit of $1.24 billion, or $1.20 a share, compared with $1.26 billion, or $1.17 a share, a year earlier. The company had fewer shares outstanding in the recent quarter.

Revenue jumped 11% to $28.77 billion. Analysts polled by Thomson Reuters had forecast earnings of $1.19 a share on revenue of $28.24 billion.

Revenue got a boost from UnitedHealth's recent purchase of a majority stake in Brazilian insurer and hospital operator Amil Participacoes S/A (AMPIY, AMIL3.BR). UnitedHealth owns 65% of Amil and expects to buy an additional 25% in the first half of this year. The total deal is valued at about $4.3 billion in cash.

UnitedHealth's insurance business saw its revenue increase 11% to $26.9 billion in the recent quarter.

Revenue from Optum, the company's information- and technology-based health-services business, declined 1.3% to $7.5 billion, but the operating margin there rose to 6.1% from 3.7% a year earlier. UnitedHealth cited growth in higher margin products and efficiency improvements.

The company ended the year with 40.9 million medical members, including members added through the Amil deal, up 18% from a year earlier.

--Melodie Warner contributed to this article.

Write to Jon Kamp at jon.kamp@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : UnitedHealth Group Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on UNITEDHEALTH GROUP INC
09/28 UNITEDHEALTH : UnitedHealthcare and Optum Support People Affected by Floods in I..
09/28 UNITEDHEALTH : New Report Highlights New Level of Detail in Wide Variations of W..
09/28 UNITEDHEALTH : New Report Highlights New Level of Detail in Wide Variations of W..
09/28 UNITEDHEALTH : UnitedHealthcare and Optum Support People Affected by Floods in W..
09/27 UNITEDHEALTH : Schedules Third Quarter Earnings Release and Conference Call for ..
09/27 DOW MOVERS : Unh, ibm
09/27 UNITEDHEALTH : Frost & Sullivan Names Optum 2016 North America Company of the Ye..
09/27 UNITEDHEALTH : 3 giant new 2017 ACA exchange menu announcements
09/26 UNITEDHEALTH : UnitedHealthcare and Optum Support People Affected by Floods in W..
09/25 UNITEDHEALTH : Health insurer to offer federal exchange policies statewide
More news
Sector news : Managed Healthcare - NEC
09/22DJANTHEM : Cigna Swap Allegations Of Breach -- WSJ
09/21DJANTHEM : Cigna Have Accused Each Other of Merger Breach, Filing Claims
09/21DJANTHEM : DOJ Says Anthem and Cigna Accuse Each Other of Merger Breach -Bloomberg
09/21DJANTHEM : Cigna Accuse Each Other of Merger Breach
09/21DJAMEDISYS : After the Floods, an Outpouring of Help From the CEO -- WSJ
More sector news : Managed Healthcare - NEC
News from SeekingAlpha
09/23 BIOTECH FORUM DAILY DIGEST : Can Biotech Broach Resistance Levels? Worst Now Ove..
09/22 Where Did All That EpiPen Money Go?
09/21 A check of Cooperman's top holdings after SEC charges
09/19 Safest Dividend Healthcare September Dogs Are Higher Priced
09/19 Mr. Market Has A Big Date
Advertisement
Financials ($)
Sales 2016 184 004 M
EBIT 2016 12 270 M
Net income 2016 7 104 M
Debt 2016 18 881 M
Yield 2016 1,51%
P/E ratio 2016 19,16
P/E ratio 2017 16,61
EV / Sales 2016 0,83x
EV / Sales 2017 0,76x
Capitalization 134 087 M
More Financials
Chart UNITEDHEALTH GROUP INC
Duration : Period :
UnitedHealth Group Inc Technical Analysis Chart | UNH | US91324P1021 | 4-Traders
Full-screen chart
Technical analysis trends UNITEDHEALTH GROU...
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 162 $
Spread / Average Target 15%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Stephen J. Hemsley Chief Executive Officer & Director
David Scott Wichmann President
Richard T. Burke Non-Executive Chairman
John Franklin Rex Chief Financial Officer
Richard J. Migliori Chief Medical Officer & EVP-Medical Affairs
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
UNITEDHEALTH GROUP INC19.68%133 068
AETNA INC7.05%40 317
CIGNA CORPORATION-10.00%33 441
ANTHEM INC-9.42%32 917
HUMANA INC-0.72%26 133
CENTENE CORP4.97%11 632
More Results