UnitedHealth Group CEO Reportedly Says Company Will Hit Financial Records: Exec's Murder, Public Outcry Are Backdrop For Q4 Earnings

The death of UnitedHealthcare CEO Brian Thompson shocked the health insurance industry and could be on the minds of investors and analysts when the insurance company's parent UnitedHealth Group UNH reports fourth-quarter financial results on Jan. 16.

What Happened: UnitedHealth Group has been in the spotlight since Luigi Mangione allegedly shot and killed Thompson in New York outside a conference he was attending.

The killing of Thompson put a spotlight on the health insurance industry, with some of the public sympathizing with Mangione and using the murder investigation to highlight the high costs of insurance premiums and high rate of claim denials by large corporations.

A recent report from The Wall Street Journal said UnitedHealth Group CEO Andrew Witty has worked to keep employees calm and executives safe since Thompson’s murder in December.

The report also said that Witty has told executives the insurance company will hit financial records in the current fiscal year, which could again put the company and stock in the spotlight next month.

Benzinga reached out to UnitedHealth for comment.

Witty brings experience in leading companies and navigating crises, but the death of an executive introduces a new challenge. As CEO, he must now manage analyst and investor expectations while rebuilding public trust, especially as the health insurance sector faces increased scrutiny from consumers and Congress.

"The environment we find ourselves in is a complex one, not one that was ever designed by anybody," Witty said in a video sent to employees and viewed by The Wall Street Journal.

Witty is also working on keeping employees safe with online messaging now under company monitor and armed security guards placed at the company's Minnesota headquarters following Thompson’s killing.

Read Also: UnitedHealthcare CEO Murder Suspect: Chronic Pain, Unabomber Fascination, Isolation Details Emerge

What's Next: UnitedHealth Group will report fourth-quarter financial results before the market opens on Jan. 16. Analysts expect the company to report revenue of $101.77 billion, up from $94.43 billion year-over-year, according to data from Benzinga Pro.

Analysts expect the company to report earnings per share of $6.73, up from $6.16 in last year's fourth quarter.

The company has beaten analyst revenue estimates in eight of the last 10 quarters and beaten earnings per share estimate in nine of the last 10 quarters.

Revenue through the first nine months is $299 billion, a company record and up from $277 billion through the first nine months of 2023.

Mangione recently pleaded not guilty to state charges of murder. The suspect faces state and federal charges that carry sentences of up to life in prison and the possibility of the death penalty if he is convicted.

A notebook found on Mangione at the time of his arrest criticized the health insurance sector and wealthy executives.

An entry in the notebook dated Aug. 15 said: “The details are finally coming together.” The entry said procrastination had allowed Mangione to learn more about the company he was targeting; the name of the company was redacted.

“The target is insurance…it checks every box,” was also written in the notebook alleged to belong to Mangione, according to the federal complaint against him.

The notebook also references the investor conference that Thompson was set to attend.

“This investor conference is a true windfall.”

Mangione gained support from the public: negative reviews were left for the Pennsylvania McDonald's location where workers and customers recognized Mangione and called the police, leading to his arrest.

Podcaster Joe Rogan covered the topic of Thompson’s killing before Mangione's arrest and suggested the public wasn't as sympathetic to Thompson and UnitedHealthcare due to the "dirty business" in which they operate.

"Apparently, that company is really bad at denying claims," Rogan said.

Rogan said the only people crying over Thompson’s death are “maybe his family, but that’s about it.”

“It’s a dirty, dirty business. The business of insurance is f***ing gross. It’s gross. Especially health care insurance,” Rogan added.

UNH Price Action: UnitedHealth Group stock is trading at $505.98 at the time of writing Tuesday versus a 52-week trading range of $436.38 to $630.73. UnitedHealth stock is down 5.6% year-to-date in 2024 and down 17% over the last month.

Read Next:

• Can You Bet On Luigi Mangione’s Fate? Betting Platforms, Regulators Wrestle With Limits In Growing Market

Photo: Shutterstock