Back to top

UnitedHealth (UNH) Q1 Earnings Beat on Higher Revenues

Read MoreHide Full Article

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 Minnetonka-based major health insurer’s earnings release this morning:

An Earnings Beat

UnitedHealth came out with earnings of $3.04 per share, which beat the Zacks Consensus Estimate of $2.92. Earnings also rose 28.3% year over year.

Improved revenues and higher enrollment primarily drove earnings beat.

Earnings Surprise History

UnitedHealth has an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all prior four quarters.

UnitedHealth Group Incorporated Price and EPS Surprise

Revenue Higher Than Expected

UnitedHealth recorded revenues of $55.2 billion, which surpassed the Zacks Consensus Estimate of $54.9 billion. Also, it compared favorably with the year-ago number of $48.7 billion.

Key Stats for Q1

•    Total operating cost of $51.1 billion increased 12.9% year over year.
•    Net margin expanded 60 basis points to 5.1%.
•    The company served 53.6 million people, up from 51.4 million people in the year ago quarter.
•    Spent $2.65 billion in share buybacks and paid $722 million in dividends.
•    Adjusted cash flows from operations of $3.2 billion.

Guidance Update

UnitedHealth revised its 2018 financial outlook given solid first quarter results. It now expects 2018 net earnings of $11.70 to $11.95 from $11.65 to $11.95 per share expected earlier. Adjusted net earnings have been raised to $12.40 to $12.65 from $12.30 to $12.60 per share guided earlier. Cash flows from operations are expected to range from $15 billion to $15.5 billion.

What Zacks Rank Says

UnitedHealth carries a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

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!

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

Click here to access these stocks. >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


UnitedHealth Group Incorporated (UNH) - free report >>

More from Zacks Tale of the Tape

You May Like