UnitedHealth Tops Q3 Expectations

UnitedHealth Group Inc UNH reported better-than-expected results for the third quarter on Thursday. The Minnetonka, Minnesota-based company reported quarterly net income of $1.597 billion, or $1.65 per share, versus $1.602 billion, or $1.63 per share, in the year-ago quarter. Its revenue climbed 27 percent to $41.5 billion from $32.8 billion. However, analysts were projecting a profit of $1.64 per share on revenue of $40.4 billion. The average estimate among 46 Estimize users was for earnings of $1.66 per share and revenue of $39.82 billion. Its revenue from Optum business climbed to $19.3 billion from $12 billion. Enrollments in UnitedHealth's health insurance plans surged by 290,000 during the quarter. The consolidated medical care ratio rose 90 basis points year-over-year to 80.6 percent in the third quarter. During the quarter, the company repurchased $177 million in stock. "Our 2015 results are reflecting balanced growth across a diversity of businesses and product categories. We believe this growth will continue because we are serving people more effectively, simplifying their health care experiences, and offering practical innovations that help deliver more value to the consumer and the health care system as a whole," said Stephen J. Hemsley, chief executive officer of UnitedHealth Group. For 2015, UnitedHealth continues to expect net earnings of $6.25 to $6.35 per share, and cash flows from operations of $8.4 billion to $8.6 billion. UnitedHealth shares fell 1.55 percent to close at $122.07 yesterday.