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

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

UNITEDHEALTH GROUP (UNH)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

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 CET

--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 [email protected]

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
02:05pUNITEDHEALTH GROUP : Today’s Research Reports on Trending Tickers: UnitedHealth ..
AC
02/19UNITEDHEALTH : United Health Foundation, Cankdeska Cikana Community College Laun..
AQ
02/16UNITED HEALTH FOUNDATION : Cankdeska Cikana Community College Launch New $1.2 Mi..
BU
02/16UNITEDHEALTH GROUP INCORPORATED (NYS : UNH) Files An 8-K Departure of Directors ..
AQ
02/15UNITEDHEALTH GROUP INC : Change in Directors or Principal Officers, Financial St..
AQ
02/15DOW MOVERS : Unh, csco
AQ
02/15UNITEDHEALTH : William McNabb Joins UnitedHealth Group Board of Directors
BU
02/14UNITEDHEALTH GROUP : Board Authorizes Payment of Quarterly Dividend to Sharehold..
BU
02/13UNITEDHEALTH : Judge allows UnitedHealth Medicare fraud case to proceed
AQ
02/12UNITEDHEALTHCARE : Donates $25,000 to Support East Carolina University College o..
BU
More news
News from SeekingAlpha
02/19Healthcare In Transition 
02/15The MnM Portfolio - Checking In On Portfolio Fundamentals 
02/14UnitedHealth Group declares $0.75 dividend 
02/11DRUG PRICING : The Endgame Has Started 
02/07Ford Is A Value Trap - Cramer's Lightning Round (2/6/18) 
Financials ($)
Sales 2018 225 B
EBIT 2018 17 471 M
Net income 2018 11 440 M
Debt 2018 14 333 M
Yield 2018 1,25%
P/E ratio 2018 19,53
P/E ratio 2019 17,18
EV / Sales 2018 1,05x
EV / Sales 2019 0,96x
Capitalization 222 B
Chart UNITEDHEALTH GROUP
Duration : Period :
UnitedHealth Group Technical Analysis Chart | UNH | US91324P1021 | 4-Traders
Technical analysis trends UNITEDHEALTH GROUP
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 22
Average target price 271 $
Spread / Average Target 18%
EPS Revisions
Managers
NameTitle
David Scott Wichmann President, Chief Executive Officer & Director
Stephen J. Hemsley Executive Chairman
John Franklin Rex Chief Financial Officer
Richard J. Migliori Chief Medical Officer & EVP-Medical Affairs
Richard T. Burke Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
UNITEDHEALTH GROUP3.77%222 275
ANTHEM INC4.45%60 344
AETNA-2.01%58 363
CIGNA-3.71%47 784
HUMANA7.82%38 429
CENTENE CORPORATION1.24%17 295