UnitedHealth Likely to Record Higher Sales -- Earnings Preview

Date : 10/14/2019 @ 7:16PM
Source : Dow Jones News
Stock : UnitedHealth Group Inc (UNH)
Quote : 229.49  -10.95 (-4.55%) @ 1:00AM
After Hours
Last Trade
Last $ 229.00 ▼ -0.49 (-0.21%)

UnitedHealth Likely to Record Higher Sales -- Earnings Preview

UnitedHealth (NYSE:UNH)
Historical Stock Chart

6 Months : From Oct 2019 to Apr 2020

Click Here for more UnitedHealth Charts.
   By Dave Sebastian 

UnitedHealth Group Inc. (UNH) is scheduled to report results for its fiscal third-quarter premarket on Tuesday. Here's what you need to know.

EARNINGS FORECAST: Analysts polled by FactSet expect profit of $3.55 a share. They expect UnitedHealth to report adjusted earnings of $3.75 a share. In July, UnitedHealth raised its per-share earnings targets to between $13.95 and $14.15 from between $13.80 and $14.05. The company will hold its investor call at 8:45 a.m.

REVENUE FORECAST: Analysts polled by FactSet expect sales of $59.76 billion, compared with $56.56 billion in the year-ago period.

MEDICAL COST RATIO: The ratio, which is a comparison of an insurer's costs to its revenues, is expected to be 82.4% during the quarter, according to analysts polled by FactSet. A higher ratio indicates the company is putting less toward non-medical costs such as profits and reinvestment.


MEDICARE: The company earlier this month introduced its 2020 Medicare Advantage and prescription drug plans, and said almost 2 million people would pay zero dollars on Medicare Advantage premiums. Managed-care stocks tanked when Sen. Bernie Sanders (I., Vt.) in April introduced the Medicare for All Act. Sen. Elizabeth Warren (D, Mass.), a proponent of the bill, is among the frontrunners for the Democratic presidential nomination, according to the latest WSJ/NBC News Poll. "There's been the medical overhang of the Medicare primary debate," Evercore analyst Michael Newshel told WSJ.

HEALTH INSURER FEE: Health insurance companies in 2020 face a tax bill of more than $15.5 billion after the fee was suspended for 2019. "It's the biggest headwind for next year," Mr. Newshel said of the fee's return.

COMPETITION: The company also faces more competition as Anthem Inc. (ANTM) strives to regain market share in the commercial group risk market, which Jefferies analyst David Windley, in a note earlier this month, said is gaining traction. Mr. Windley downgraded UnitedHealth's rating to "hold" from "buy," and lowered its price target to $235 from $300.


Write to Dave Sebastian at dave.sebastian@wsj.com


(END) Dow Jones Newswires

October 14, 2019 14:01 ET (18:01 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Latest UNH Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.