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What's in the Cards for UnitedHealth's (UNH) Q1 Earnings?
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UnitedHealth Group Inc. (UNH - Free Report) is set to release first-quarter 2020 earnings on Apr 15, before market open.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $3.65, indicating a 2.4% decline from the year-ago reported figure.
The consensus mark for revenues is pegged at $64.67 billion, hinting at a rise of 7.23%.
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 $51.4 billion, implying 5.1% growth from the year-earlier reported number. Its business groups, namely 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 from each of its sub-segments, which are OptumHealth, OptumInsight and OptumRx. The Zacks Consensus Estimate for this segment’s revenues currently stands at $30.4 billion, suggesting growth of 15.2% from the prior-year 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 are likely to have benefited its bottom line.
Earnings Surprise History
The company boasts an attractive earnings surprise history, having surpassed estimates in each of the last four quarters, the average being 3.65%. 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 a positive earnings surprise. 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 +4.01% as the Zacks Consensus Estimate is pegged at $3.65 per share and the Most Accurate Estimate stands at $3.79.
Here are some other companies worth considering in the healthcare sector as our model shows that these too have the right combination of elements to beat on earnings beat this time around:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +10.01% and a Zacks Rank #2.
Centene Corp. (CNC - Free Report) has an Earnings ESP of +5.38% and is Zacks #3 Ranked.
Cigna Corp. (CI - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What's in the Cards for UnitedHealth's (UNH) Q1 Earnings?
UnitedHealth Group Inc. (UNH - Free Report) is set to release first-quarter 2020 earnings on Apr 15, before market open.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $3.65, indicating a 2.4% decline from the year-ago reported figure.
The consensus mark for revenues is pegged at $64.67 billion, hinting at a rise of 7.23%.
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 $51.4 billion, implying 5.1% growth from the year-earlier reported number. Its business groups, namely 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 from each of its sub-segments, which are OptumHealth, OptumInsight and OptumRx. The Zacks Consensus Estimate for this segment’s revenues currently stands at $30.4 billion, suggesting growth of 15.2% from the prior-year 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 are likely to have benefited its bottom line.
Earnings Surprise History
The company boasts an attractive earnings surprise history, having surpassed estimates in each of the last four quarters, the average being 3.65%. 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 a positive earnings surprise. 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 +4.01% as the Zacks Consensus Estimate is pegged at $3.65 per share and the Most Accurate Estimate stands at $3.79.
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 worth considering in the healthcare sector as our model shows that these too have the right combination of elements to beat on earnings beat this time around:
Humana Inc. (HUM - Free Report) has an Earnings ESP of +10.01% and a Zacks Rank #2.
Centene Corp. (CNC - Free Report) has an Earnings ESP of +5.38% and is Zacks #3 Ranked.
Cigna Corp. (CI - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>