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UnitedHealth (UNH) Poised to Beat on Q1 Earnings: Here's Why
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We expect UnitedHealth Group Inc. (UNH - Free Report) to beat earnings expectations when it reports first-quarter results on Apr 18, before the opening bell.
Why a Likely Positive Surprise?
Our proven model shows that UnitedHealth has the right combination of the two key ingredients to beat on earnings.
Zacks ESP:Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.46%. This is a key indicator of a likely positive earnings surprise for the company. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UnitedHealth carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
UnitedHealth Group Incorporated Price and EPS Surprise
We expect the quarter’s results to show health care premium increase backed by higher contribution from Medicare, Medicaid and Commercial insurance businesses. Revenues will reap the benefits of an increase in enrollment from international business, Medicare Advantage, Administrative Services Only and Commercial health insurance plans.
Results should also show an increase in revenues from its health services segment Optum. This increase is likely to be driven by higher contribution from subsegments Optum Health and OptumInsight. However, an expected decline in revenue from yet another subsegment OptumRx due to the anticipated Catamaran customer losses will to some extent offset top-line growth.
The company will also be shielded from the losses caused by the public exchange business, since it reduced its participation on the exchanges from 34 to merely three in 2017.
The company’s bottom line will be cushioned by cost control initiatives and capital management by way of share buyback.
Other Stocks That Warrant a Look
Here are some companies from the health care sector that you may also consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Medicines Company has an Earnings ESP of +8.85% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on Apr 26.
Anthem Inc. has an Earnings ESP of +7.67% and a Zacks Rank #2. The company will report first-quarter earnings results on Apr 26.
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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 are 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 >>
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UnitedHealth (UNH) Poised to Beat on Q1 Earnings: Here's Why
We expect UnitedHealth Group Inc. (UNH - Free Report) to beat earnings expectations when it reports first-quarter results on Apr 18, before the opening bell.
Why a Likely Positive Surprise?
Our proven model shows that UnitedHealth has the right combination of the two key ingredients to beat on earnings.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.46%. This is a key indicator of a likely positive earnings surprise for the company. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .
Zacks Rank: UnitedHealth carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth Group Incorporated Price and EPS Surprise | UnitedHealth Group Incorporated Quote
Factors to Influence Q1 Results
We expect the quarter’s results to show health care premium increase backed by higher contribution from Medicare, Medicaid and Commercial insurance businesses. Revenues will reap the benefits of an increase in enrollment from international business, Medicare Advantage, Administrative Services Only and Commercial health insurance plans.
Results should also show an increase in revenues from its health services segment Optum. This increase is likely to be driven by higher contribution from subsegments Optum Health and OptumInsight. However, an expected decline in revenue from yet another subsegment OptumRx due to the anticipated Catamaran customer losses will to some extent offset top-line growth.
The company will also be shielded from the losses caused by the public exchange business, since it reduced its participation on the exchanges from 34 to merely three in 2017.
The company’s bottom line will be cushioned by cost control initiatives and capital management by way of share buyback.
Other Stocks That Warrant a Look
Here are some companies from the health care sector that you may also consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Pra Health Sciences Inc. is expected to report first-quarter earnings results on Apr 26. The company has an Earnings ESP of +1.72% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Medicines Company has an Earnings ESP of +8.85% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on Apr 26.
Anthem Inc. has an Earnings ESP of +7.67% and a Zacks Rank #2. The company will report first-quarter earnings results on Apr 26.
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 are 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 >>