UnitedHealth Q1 Earnings Beat Consensus Helped By Growth Across Segments

UnitedHealth Group Inc UNH reported Q1 FY22 sales of $80.1 billion, up 14.2% Y/Y, beating the consensus of $78.76 billion, with double-digit growth at both Optum and UnitedHealthcare.

• Adjusted EPS of $5.49 surpassed the consensus of $5.37 and was better than $5.31 a year ago.
• The company generated an operating cash flow of $5.3 billion or 1.0x net income.
• The medical care ratio was 82% compared to 80.9% a year ago due to COVID effects and business mix.
• The operating cost ratio of 14.2% decreased from 14.6% in Q1 FY21 due to COVID effects and continued productivity advances, partially offset by business mix and investments.
• Related: UnitedHealth Scoops Up Home-Health Firm LHC Group In $5.4B Deal.
• UnitedHealthcare segment Q4 revenues grew 13.6% to $62.6 billion compared to last year, with operating earnings of $3.8 billion compared to $4.1 billion last year.
• Optum segment sales were up 18.9% to $43.3 billion, and operating earnings rose to $3.2 billion from $2.6 billion a year ago.
• Guidance: UnitedHealth expects FY22 adjusted EPS of $21.20 - $21.70, up from prior outlook of $21.10 - $21.60. 
• Price Action: UNH shares closed 0.21% lower at $536.80 during after-hours trading on Wednesday.