UnitedHealth Raises Profit Targets on Higher Sales
October 15 2019 - 7:01AM
Dow Jones News
By Dave Sebastian
UnitedHealth Group Inc. boosted its profit guidance for the year
as revenue growth from its network of health services, premiums and
health-care plan membership fueled the company's third-quarter
performance.
The company projects its 2019 per-share earnings to be between
$14.15 and $14.25, compared with its previous forecast of $13.95 to
$14.15. UnitedHealth said it expects adjusted per-share earnings to
come in between $14.90 and $15 a share, compared with earlier
projections of $14.70 a share to $14.90 a share.
The parent of the nation's largest health insurer posted sales
of $60.35 billion for the third quarter, up 6.71% from the
comparable quarter a year ago and beating the $59.76 billion
analysts polled by FactSet had expected.
Sales for the Optum health-services business grew 13.39% to
$28.8 billion compared with the year-ago period. Sales for the
UnitedHealthcare health-benefits platform grew 4.79% to $48.1
billion during the quarter as commercial and Medicare Advantage
membership grew, UnitedHealth said.
Overall, earnings rose to $3.67 a share, up 13.3% from the
comparable period last year. Analysts were expecting $3.55 a
share.
UnitedHealth reported an adjusted profit of $3.88 a share,
topping analysts' estimates of $3.75 a share.
Shares of UnitedHealth, which have lost 11.45% in 2019, rose
2.45% in premarket trading.
(END) Dow Jones Newswires
October 15, 2019 06:46 ET (10:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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