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UnitedHealth's (UNH) Q1 Earnings Beat on Higher Revenues
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Have you been eager to see how UnitedHealth Group Inc. (UNH - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this health insurer’s earnings release this morning:
An Earnings Beat
UnitedHealth reported net operating earnings per share of $2.37, comfortably beating the Zacks Consensus Estimate of $2.18 and was up 31% year over year. Earnings beat reflected higher revenues and membership growth.
Earnings Surprise History
Regarding earnings surprise history, before posting an earnings beat in Q1, the company delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 3.8%.
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth posted net revenues of $48.7 billion, which outpaced the Zacks Consensus Estimate of $48.24 billion. Further, it was up 9.4% year over year.
Key Takeaways
Earnings from operations of $3.4 million was up 13.33% year over year. Adjusted cash flows were $2.0 billion compared to $2.3 billion in the year ago quarter.
Consolidated medical care ratio of 82.4% increased 70 basis points year-over-year.
Operating cost ratio of 14.4% decreased 80 basis points year-over-year, due to the health insurance tax moratorium.
The company served 49.32 million members up from 47.67 million members in the year ago quarter.
Guidance Update
Driven by strong earnings, UnitedHealth Group raised its financial outlook. It now expects 2017 revenues of approximately $200 billion, GAAP net earnings of $9.10 to $9.30 per share and adjusted net earnings of $9.65 to $9.85 per share. Cash flows from operations is expected at approximately $12 billion.
What Zacks Rank Says
UnitedHealth carries a Zacks Rank # 2 (Buy). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now, it all depends on the analysts’ take on the just-released earnings report.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on this UnitedHealth earnings report later!
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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UnitedHealth's (UNH) Q1 Earnings Beat on Higher Revenues
Have you been eager to see how UnitedHealth Group Inc. (UNH - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this health insurer’s earnings release this morning:
An Earnings Beat
UnitedHealth reported net operating earnings per share of $2.37, comfortably beating the Zacks Consensus Estimate of $2.18 and was up 31% year over year. Earnings beat reflected higher revenues and membership growth.
Earnings Surprise History
Regarding earnings surprise history, before posting an earnings beat in Q1, the company delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 3.8%.
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth Group Incorporated Price and EPS Surprise | UnitedHealth Group Incorporated Quote
Revenue Came In Higher Than Expected
UnitedHealth posted net revenues of $48.7 billion, which outpaced the Zacks Consensus Estimate of $48.24 billion. Further, it was up 9.4% year over year.
Key Takeaways
Earnings from operations of $3.4 million was up 13.33% year over year.
Adjusted cash flows were $2.0 billion compared to $2.3 billion in the year ago quarter.
Consolidated medical care ratio of 82.4% increased 70 basis points year-over-year.
Operating cost ratio of 14.4% decreased 80 basis points year-over-year, due to the health insurance tax moratorium.
The company served 49.32 million members up from 47.67 million members in the year ago quarter.
Guidance Update
Driven by strong earnings, UnitedHealth Group raised its financial outlook. It now expects 2017 revenues of approximately $200 billion, GAAP net earnings of $9.10 to $9.30 per share and adjusted net earnings of $9.65 to $9.85 per share. Cash flows from operations is expected at approximately $12 billion.
What Zacks Rank Says
UnitedHealth carries a Zacks Rank # 2 (Buy). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now, it all depends on the analysts’ take on the just-released earnings report.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on this UnitedHealth earnings report later!
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.