UnitedHealth Shares Gain On Q3 Earnings Beat, Raised FY21 Outlook

UnitedHealth Group Inc UNH reported Q3 revenues of $72.3 billion, up 11% Y/Y and beating the consensus of $71.19 billion, reflecting growth across the enterprise.
Adjusted EPS of $4.52 surpassed the consensus of $4.41.
UNH generated a Q3 operational cash flow of $7.6 billion. Q3 medical care ratio was 83% compared to 81.9% last year, with the variance primarily due to the repeal of the health insurance tax.
Days claims payable of 50.4 days compared to 49.1 days in Q2 of 2021 and 46.8 days in Q3 of 2020. The operating cost ratio decreased to 14.8% from 15.6% a year ago.
UnitedHealthcare segment revenues grew 11% to $55.9 billion compared to last year, with operating earnings of $2.7 billion compared to $2.1 billion last year, reflecting strong member growth, reduced net COVID-19 effects.
Optum segment sales were up 13.9% to $39.8 billion, and operating earnings of $3.1 billion grew 18.5%.
OptumInsight's revenue backlog increased 12% to $22.3 billion, driven by growth in comprehensive managed services.
OptumRx adjusted scripts reached 344 million, +6% Y/Y.
Guidance: The Company increased its full-year adjusted EPS guidance from $18.30-$18.80 to $18.65-$18.90 versus a consensus of $18.75.
Price Action: UNH shares traded higher by 2.22% at $412.5 in the premarket session on the last check Thursday.

Momentum29.94

Growth52.07

Quality37.76

Value66.97

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