By Allison Prang 

UnitedHealth Group Inc. reported an almost 31% increase in earnings for its latest quarter and increased its earnings outlook for the year.

The biggest U.S. insurer made $2.84 billion, or $2.87 a share, up 31% from the $2.17 billion, or $2.23 a share the company made for the same period the year before. On an adjusted basis, UnitedHealth made $3.04 a share compared to $2.37 a share the year before.

Revenue rose 13% to $55.19 billion, helped by double-digit percentage increases in both the company's health care and Optum segments.

Analysts polled by Thomson Reuters were expecting adjusted earnings of $2.89 a share. They expected revenue of $54.86 billion.

UnitedHealth also increased its outlook for the year and expects to earn between $11.70 and $11.95 a share. On an adjusted basis, the company is expecting to make between $12.40 and $12.65 a share. Analysts are expecting adjusted earnings of $12.54 a share.

Shares fell 0.1% premarket on low volume. In the past 12 months, they have risen 38%. They are up 4.5% so far this year.

UnitedHealth had expected the recent new tax law to help earnings by about 16% for the year and grow its cash flow by about $1.7 billion.

The health-care provider said its income-tax rate in its most recent quarter was 21.5%.

Revenue from premiums climbed 13%, in line with the company's overall increase in revenue, to $44.08 billion. Total operating costs at the company rose 13% to $51.14 billion.

Earnings from operations at Optum, a health services business that is part of the company, rose 29%, outpacing the company's health care business.

Optum wants to acquire DaVita Medical, which UnitedHealth agreed to purchase in December. Those plans hit a bump last month when the Federal Trade Commission asked for more information about the deal. UnitedHealth had proposed to buy DaVita for $4.9 billion in cash. DaVita would fall under UnitedHealth's OptumCare segment.

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

April 17, 2018 07:04 ET (11:04 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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