UnitedHealth Group Inc (NYSE: UNH) said on Thursday its profit and revenue in the fiscal second quarter topped Wall Street estimates by a significant margin. The health care provider acknowledged that the pandemic was likely to keep weighing on results. Still, it raised its guidance for the full year.
Financial performance
UnitedHealth said its net income in the second quarter printed at $4.27 billion that translates to $4.46 per share. In the same quarter last year, its net income stood at a higher $6.64 billion, or $6.91 per share.
Adjusted for one-time items, the insurance company reported $4.70 of adjusted EPS versus the year-ago figure of a much higher $7.12 per share. UnitedHealth generated $71.32 billion of total revenue in the recent quarter that represents an annualised growth of 14.8%.
According to FactSet, experts had forecast the company to post $69.51 billion of revenue and $4.43 of adjusted EPS.
Guidance for full fiscal 2021
For fiscal 2021, the Minnetonka-based company now expects up to $18.80 of adjusted per-share earnings, including a negative impact of $1.80 per share from testing and treatment costs related to the Coronavirus crisis.
UnitedHealth’s premiums revenue in Q2 climbed by 13.8%, and Optum revenue jumped 17.1%. Shares of the company were about 1% down in premarket trading. The industry bellwether is currently valued at $391 billion with a price to earnings ratio of 23.57.
CEO Andrew Witty’s remarks
UnitedHealth wants to align its healthcare services with its insurance services. On the earnings call, CEO Andrew Witty said:
“We are working to unlock the collaborative opportunities within Optum and UnitedHealthcare. We are doubling down on efforts to both expand and link services where it creates value for consumers and patients to make their health care journey easier, simpler, and more intuitive.”
Last month, UnitedHealth outlined its strategy to close 600 million gaps in care for its members by 2025.
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