A Preview Of UnitedHealth Group's Earnings

UnitedHealth Group UNH will release its quarterly earnings report on Thursday, 2025-04-17. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate UnitedHealth Group to report an earnings per share (EPS) of $7.31.

UnitedHealth Group bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS beat by $0.07 in the last quarter, leading to a 0.16% drop in the share price on the following day.

Here's a look at UnitedHealth Group's past performance and the resulting price change:

UnitedHealth Group Share Price Analysis

Shares of UnitedHealth Group were trading at $583.59 as of April 15. Over the last 52-week period, shares are up 18.57%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on UnitedHealth Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on UnitedHealth Group.

With 6 analyst ratings, UnitedHealth Group has a consensus rating of Outperform. The average one-year price target is $660.33, indicating a potential 13.15% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Centene, Molina Healthcare and HealthEquity, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Centene, with an average 1-year price target of $68.33, suggesting a potential 88.29% downside.
• Analysts currently favor an Neutral trajectory for Molina Healthcare, with an average 1-year price target of $363.56, suggesting a potential 37.7% downside.
• Analysts currently favor an Outperform trajectory for HealthEquity, with an average 1-year price target of $111.11, suggesting a potential 80.96% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Centene, Molina Healthcare and HealthEquity, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

UnitedHealth Group ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into UnitedHealth Group's Background

UnitedHealth Group is one of the largest private health insurers and provides medical benefits to about 51 million members globally, including 1 million outside the US as of December 2024. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in medical insurance. Along with its insurance assets, UnitedHealth's Optum franchises help create a healthcare services colossus that spans everything from pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.

UnitedHealth Group's Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: UnitedHealth Group's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.76%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: UnitedHealth Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.5%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.92%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): UnitedHealth Group's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.86% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: UnitedHealth Group's debt-to-equity ratio is below the industry average. With a ratio of 0.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for UnitedHealth Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.