UnitedHealth Stuns Wall Street With Major Earnings Comeback

Benzinga

UnitedHealth (NYSE: UNH) just surprised Wall Street with a major earnings beat and a raised profit outlook under returning CEO Stephen Hemsley.  After months of turmoil over rising medical costs and regulatory scrutiny, the health-care giant reported Q3 adjusted earnings of $2.92 per share, beating analyst estimates of $2.79.  The company also raised its full-year profit guidance to at least $16.25 per share, up from its prior forecast and above consensus expectations.  Its medical loss ratio was 89.9%, matching forecasts, while its pharmacy unit Optum Rx saw revenue jump 16% to $39.7 billion.  Morningstar analysts called the results a “sign of stability” after a year of setbacks for the company. Shares rose more than 3% premarket following the announcement.

Transcript

00:00UnitedHealth just shocked everyone, but it's not because of bad news for once.

00:04After months of rising medical costs, federal probes, and angry customers,

00:09the healthcare giant finally delivered a win, beating earnings and raising its profit forecast.

00:15The stock jumped more than 3% in pre-market trading.

00:18CEO Stephen Hemsley, who returned in May to steady the ship,

00:21says this quarter's results show the turnaround is taking hold.

00:25Analysts are calling it a sign of stability after a chaotic year.

00:28Earnings came in at $2.92 per share, topping estimates of $2.79.

00:35And UnitedHealth raised its full-year profit outlook to at least $16.25 per share.

00:41That's higher than Wall Street expected.

00:43Its medical loss ratio landed at 89.9%, right in line with expectations.

00:49And its pharmacy unit, OptumRx, saw revenue climb 16% to $39.7 billion on higher prescription volumes.

00:57Make sure you follow Benzingen to get more real-time news impacting the markets.

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