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UnitedHealth (UNH) to Post Q4 Earnings: What's in the Cards?
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UnitedHealth Group Inc. (UNH - Free Report) is set to release fourth-quarter and 2019 earnings on Jan 15, before market open.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $3.77, indicating an increase of 14.94% year over year. The consensus mark for revenues is pegged at $60.98 billion, indicating a rise of 4.38%.
Factors at Play
Revenues at the UnitedHealthcare segment are likely to have gained from higher enrollment and increase in pricing. The Zacks Consensus Estimate for this segment’s revenues is currently pegged at $48.7 billion, indicating growth of 5.1% from the year-ago quarter’s reported figure. Its business groups — Employer and Individual, Medicare and Retirement, and Global — are expected to have contributed to earnings. Also, revenue growth and cost control are likely to have aided the segment’s earnings.
Revenues at Optum segment are likely to have improved on strong contributions across each of its sub-segments, OptumHealth, OptumInsight and OptumRx. The Zacks Consensus Estimate for this segment’s revenues is currently pegged at $30.4 billion, suggesting growth of 10.5% from year-ago quarter’s reported figure.
The company is likely to have experienced an increase in total medical membership driven by growth in members served in the Commercial and Medicare Advantage, partially offset by lower Medicaid and International membership.
Share repurchases made by UnitedHealth in the to-be-reported quarter is likely to have benefited its bottom line.
2019 Guidance
The company expects 2019 adjusted EPS of $14.90-$15.
Earnings Surprise History
The company boasts an attractive earnings surprise history. It beat estimates in each of the last four quarters, the surprise being 3.41%, on average. This is depicted in the chart below:
UnitedHealth Group Incorporated Price and EPS Surprise
Our proven model predicts an earnings beat for UnitedHealth this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: UnitedHealth has an Earnings ESP of +0.43% as the Zacks Consensus Estimate is pegged at $3.77 per share and the Most Accurate Estimate stands at $3.79 per share.
Here are some other companies in the healthcare sector that you may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #2.
Centene Corp. (CNC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #3.
Medtronic PLC (MDT - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
UnitedHealth (UNH) to Post Q4 Earnings: What's in the Cards?
UnitedHealth Group Inc. (UNH - Free Report) is set to release fourth-quarter and 2019 earnings on Jan 15, before market open.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $3.77, indicating an increase of 14.94% year over year. The consensus mark for revenues is pegged at $60.98 billion, indicating a rise of 4.38%.
Factors at Play
Revenues at the UnitedHealthcare segment are likely to have gained from higher enrollment and increase in pricing. The Zacks Consensus Estimate for this segment’s revenues is currently pegged at $48.7 billion, indicating growth of 5.1% from the year-ago quarter’s reported figure. Its business groups — Employer and Individual, Medicare and Retirement, and Global — are expected to have contributed to earnings. Also, revenue growth and cost control are likely to have aided the segment’s earnings.
Revenues at Optum segment are likely to have improved on strong contributions across each of its sub-segments, OptumHealth, OptumInsight and OptumRx. The Zacks Consensus Estimate for this segment’s revenues is currently pegged at $30.4 billion, suggesting growth of 10.5% from year-ago quarter’s reported figure.
The company is likely to have experienced an increase in total medical membership driven by growth in members served in the Commercial and Medicare Advantage, partially offset by lower Medicaid and International membership.
Share repurchases made by UnitedHealth in the to-be-reported quarter is likely to have benefited its bottom line.
2019 Guidance
The company expects 2019 adjusted EPS of $14.90-$15.
Earnings Surprise History
The company boasts an attractive earnings surprise history. It beat estimates in each of the last four quarters, the surprise being 3.41%, on average. This is depicted in the chart below:
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth Group Incorporated price-eps-surprise | UnitedHealth Group Incorporated Quote
What Our Model Says
Our proven model predicts an earnings beat for UnitedHealth this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: UnitedHealth has an Earnings ESP of +0.43% as the Zacks Consensus Estimate is pegged at $3.77 per share and the Most Accurate Estimate stands at $3.79 per share.
Zacks Rank: UnitedHealth has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks That Warrant a Look
Here are some other companies in the healthcare sector that you may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #2.
Centene Corp. (CNC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #3.
Medtronic PLC (MDT - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>