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UnitedHealth (UNH) Unveils its Latest Outlook: Key Takeaways
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UnitedHealth Group Incorporated (UNH - Free Report) disclosed its financial projections for 2024 and reiterated its 2023 outlook ahead of its annual Investor Conference. As one of the leading health insurance companies, UNH's guidance offers insights into the anticipated performance of the broader industry in the coming year.
For 2023, UnitedHealth reaffirmed its adjusted net earnings estimate of $24.85 to $25 per share. The midpoint of the revised guidance implies 12.3% growth from the 2022 figure. The Zacks Consensus Estimate for the metric is currently pegged at $24.95 per share, indicating a 12.4% year-over-year increase. Also, the consensus mark for its 2023 revenues is pegged at $369.3 billion, signaling a 13.9% jump from a year ago.
For 2024, UNH anticipates revenues to be within $400-$403 billion, above the consensus mark. The Zacks Consensus Estimate for the metric is currently pegged at $393.7 billion. UNH’s revenues witnessed a CAGR of 10.9% from 2015 to 2022. Growing strength in its UnitedHealthcare and Optum segments is likely to support future growth. Increasing memberships are likely to aid its premium collection and service fees.
The company expects adjusted net earnings to be within the range of $27.50-$28 per share for 2024 compared with the Zacks Consensus Estimate of $27.91. Its plan to expand its coverage area and reach 96% of all Medicare customers with its 2024 Individual Medicare Advantage Plan can play a vital role in this growth. The consensus estimate falling within the guided range indicates that analysts are accurately forecasting the trajectory of medical cost growth.
UNH plans to enhance its offerings with improved benefits and broad network access. The company expects operating cash flow to be within $30-$31 billion in 2024. Earlier, it estimated operating cash flows for 2023 to be $27-$28 billion. The ongoing recovery in commercial business and demand growth are likely to drive UnitedHealth’s cash-generating abilities. This outlook not only provides insights into UNH's performance but also serves as an indicator for the broader health insurance industry where similar improvements are anticipated among industry players.
Price Performance
UnitedHealth shares have gained 2.4% in the past year compared with the industry’s 0.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Enovis’ current-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed three upward estimate revisions over the past 30 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago.
The Zacks Consensus Estimate for Motus GI’s 2023 bottom suggests a 67.2% year-over-year improvement. It beat earnings estimates in all the last four quarters, with an average surprise of 40.2%. MOTS has witnessed one upward estimate revision over the past 30 days against no movement in the opposite direction.
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UnitedHealth (UNH) Unveils its Latest Outlook: Key Takeaways
UnitedHealth Group Incorporated (UNH - Free Report) disclosed its financial projections for 2024 and reiterated its 2023 outlook ahead of its annual Investor Conference. As one of the leading health insurance companies, UNH's guidance offers insights into the anticipated performance of the broader industry in the coming year.
For 2023, UnitedHealth reaffirmed its adjusted net earnings estimate of $24.85 to $25 per share. The midpoint of the revised guidance implies 12.3% growth from the 2022 figure. The Zacks Consensus Estimate for the metric is currently pegged at $24.95 per share, indicating a 12.4% year-over-year increase. Also, the consensus mark for its 2023 revenues is pegged at $369.3 billion, signaling a 13.9% jump from a year ago.
For 2024, UNH anticipates revenues to be within $400-$403 billion, above the consensus mark. The Zacks Consensus Estimate for the metric is currently pegged at $393.7 billion. UNH’s revenues witnessed a CAGR of 10.9% from 2015 to 2022. Growing strength in its UnitedHealthcare and Optum segments is likely to support future growth. Increasing memberships are likely to aid its premium collection and service fees.
The company expects adjusted net earnings to be within the range of $27.50-$28 per share for 2024 compared with the Zacks Consensus Estimate of $27.91. Its plan to expand its coverage area and reach 96% of all Medicare customers with its 2024 Individual Medicare Advantage Plan can play a vital role in this growth. The consensus estimate falling within the guided range indicates that analysts are accurately forecasting the trajectory of medical cost growth.
UNH plans to enhance its offerings with improved benefits and broad network access. The company expects operating cash flow to be within $30-$31 billion in 2024. Earlier, it estimated operating cash flows for 2023 to be $27-$28 billion. The ongoing recovery in commercial business and demand growth are likely to drive UnitedHealth’s cash-generating abilities. This outlook not only provides insights into UNH's performance but also serves as an indicator for the broader health insurance industry where similar improvements are anticipated among industry players.
Price Performance
UnitedHealth shares have gained 2.4% in the past year compared with the industry’s 0.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Enovis Corporation (ENOV - Free Report) , Centene Corporation (CNC - Free Report) and Motus GI Holdings, Inc. (MOTS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Enovis’ current-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed three upward estimate revisions over the past 30 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago.
The Zacks Consensus Estimate for Motus GI’s 2023 bottom suggests a 67.2% year-over-year improvement. It beat earnings estimates in all the last four quarters, with an average surprise of 40.2%. MOTS has witnessed one upward estimate revision over the past 30 days against no movement in the opposite direction.