On Tuesday, UnitedHealth Group UNH introduced its 2025 outlook ahead of its Investor Conference on Wednesday, which had to be stopped abruptly. The company’s insurance division, United Healthcare’s CEO Brian Thompson, was fatally shot in a reportedly targeted attack.
The healthcare giant expects 2025 sales of $450 billion-$455 billion, exceeding the consensus of $431.397 billion.
The guidance includes Optum sales of $277 billion-$280 billion and UnitedHealthcare sales of $337 billion-$340 billion.
The company expects net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share.
According to October’s SEC filing, the company anticipated diluted earnings per share at the upper end of a range of approximately $28.75 for 2025. Adjusted net earnings per share of $30.00 excludes amortization expense of approximately $1.65 per share and the related tax impacts of $0.40 per share.
Cash flows from operations for 2025 are expected to range from $32 billion to $33 billion.
As announced in the third quarter earnings release, UnitedHealth 2024 net earnings are expected to be $15.50 to $15.75 per share and adjusted net earnings $27.50 to $27.75 per share.
For 2025, the company expects a Medical Care Ratio of 86.5% ± 50 bps, with an Operating Cost Ratio of 12.5% ± 50 bps.
The company expects the number of consumers served to be 50.97 million-51.32 million, including 8.4 million-8.45 on Medicare Advantage and 7.675 million–7.775 million on Medicaid.
Last month, the Justice Department sued to block UnitedHealth’s $3.3 billion purchase of healthcare services company Amedisys, citing concerns about competition in the home health services market.
UnitedHealth’s Optum unit launched a website that aims to highlight the benefits of the combination. The website notes that the home healthcare industry remains highly fragmented despite the growing market.
Price Action: UNH stock is up 2.63% at $621.12 at last check Wednesday.
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