UnitedHealth Posts Q1 Profit Of $5.6B On Strong Optum, Health Plans; Lifts Earnings Outlook

UnitedHealth Group Inc UNH has reported Q1 FY23 sales of $91.9 billion, up 15% Y/Y, beating the consensus of $89.77 billion.
Adjusted EPS of $6.26 increased 14% Y/Y, surpassing the consensus of $6.13.
The company reported adjusted cash flows from operations of $5.1 billion or 0.9x net income in Q1 FY23, consistent with the company's outlook.
The first quarter of 2023 medical care ratio was 82.2% compared to 82% last year, due to the business mix. The operating cost ratio was 14.8%, up from 14.2%.
UnitedHealthcare segment revenues grew 13% to $70.5 billion compared to last year, with operating earnings of $4.3 billion compared to $3.8 billion last year, reflecting growth in the number of people served.
In Q1 of 2023, UnitedHealthcare grew to serve nearly 2 million more people than a year ago, with broad-based growth across commercial, community-based, and senior benefit offerings.
Optum segment sales were up 25% to $54.1 billion, and operating earnings rose to $3.7 billion from $3.2 billion a year ago.
Optum Health revenue per consumer served increased 34% over the year-ago quarter, driven by growth in people served under value-based care arrangements.
Guidance: UnitedHealth raised FY23 adjusted EPS guidance to $24.50 - $25.00 from $24.40- $24.90 versus the consensus of $24.94.
Price Action: UNH shares are up 0.37% at $528.16 during premarket trading on the last check Friday.

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