UPDATE: UnitedHealth Posts Upbeat Q2 Earnings, Shares Rise

Shares of UnitedHealth Group UNH surged around 3.7% in pre-market trading after the company reported upbeat second-quarter earnings and raised its revenue forecast. The Minnetonka-based company posted its quarterly earnings of $1.41 billion, versus $1.44 billion, in the year-ago period. On a per-share basis, its profit climbed to $1.42 versus $1.40. Its revenue gained 7% to $32.6 billion. However, analysts were estimating earnings of $1.25 per share on revenue of $31.9 billion. The company's cash flows from operations fell to $1.0 billion from $1.5 billion, while the consolidated medical care ratio rose 10 basis points y/y to 81.6%. UnitedHealthcare Employer & Individual revenue dropped to $10.7 billion, while UnitedHealthcare Medicare & Retirement revenue climbed 7% to $11.8 billion. UnitedHealthcare Community & State revenue jumped 29% to $5.8 billion, while UnitedHealthcare International revenue gained 10% to $1.8 billion. Optum revenue jumped 28% to $11.7 billion. UnitedHealth now projects 2014 revenue of $130 billion, versus its earlier forecast of $128 billion to $129 billion. It also expects net earnings of $5.50 to $5.60 per share, compared to $5.40 to $5.60 per share. Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group said, “Our focus on executing on fundamental details, delivering innovative and responsive services that consumers value and building deeper relationships is creating stronger momentum and improving our outlook.” UnitedHealth shares gained 3.75% to $86.90 in pre-market trading.