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UnitedHealth (UNH) Q2 Earnings Beats, Revenues in Line

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Have you been eager to see how UnitedHealth Group Inc. (UNH - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this leading health insurance company’s earnings release this morning.

An Earnings Beat

UnitedHealth came out with adjusted earnings per share of $2.46, beating the Zacks Consensus Estimate of $2.38.

Better-than-expected earnings were primarily due to higher revenues and share buyback.

How Was the Estimate Revision Trend?

The earnings estimate revisions for UnitedHealth did not show a major change prior to the earnings release. The Zacks Consensus Estimate has moved just 0.1% higher over the last seven days.

But the same has increased 3.2% over the past 90 days.

Before posting earnings beat in Q2, the company delivered positive surprises in each of the trailing four quarters.

As a result, the company overall surpassed the Zacks Consensus Estimate by an average of 4.6% in the trailing four quarters.

Revenue Came In Line

UnitedHealth posted revenues of $50.1 billion, in line with the Zacks Consensus Estimate. The reported figure was up from 7.7% from the year-ago quarter.

Key Stats to Note

Consolidated medical care ratio of 82.2% increased 20 basis points year-over-year.

Operating cost ratio of 14.6% was flat year-over-year.

The company medical enrollment grew to 49.5 million from 48 million in the year-ago quarter.

Cash flows from operations were $2.2 billion up 29% year-over-year.

Guidance Update

Followed by strong earnings performance in the first-half of 2017, the company raised its outlook for 2017 GAAP net earnings to a range of $9.20 to $9.35 per share and adjusted net earnings to a range of $9.75 to $9.90 per share.

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. (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!

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