UnitedHealth Delivers Street Beating Q4 Earnings On Balanced Enterprise-Wide Growth, Reaffirms FY23 Guidance

UnitedHealth Group Inc UNH has reported Q4 FY22 sales of $82.78 billion, up 12% Y/Y, beating the consensus of $82.59 billion.
Adjusted EPS of $5.34 increased 19.2% Y/Y, surpassing the consensus of $5.17.
The company generated an operating cash flow of $26.2 billion or 1.3x net income for FY22.
The medical care ratio was at 82.0% for the full year 2022 and 82.8% for Q4.
The full-year 2022 operating cost ratio of 14.7% compared to 14.8% in 2021, with ongoing productivity gains offset by business mix and continued investments in growth initiatives.
UnitedHealthcare segment revenues grew 11.82% to $63.05 billion compared to last year, with operating earnings of $2.9 billion compared to $2.1 billion last year.
People served domestically by UnitedHealthcare grew by over 1.2 million in 2022, led by the company’s community-based and senior offerings. Over the past nine months, the number of consumers served with domestic, commercial benefit offerings grew by 275,000.
Optum segment sales were up 16.5% to $47.87 billion, and operating earnings rose to $4.0 billion from $3.4 billion a year ago.
Guidance: UnitedHealth reaffirmed FY23 adjusted EPS of $24.40- $24.90 versus the consensus of $24.94.
The company expects FY23 sales of $357-$360 billion versus the consensus of $356.24 billion and cash flows from operations of $27 billion to $28 billion.
Price Action: UNH shares are down 1.10% at $490.20 during premarket trading on the last check Friday.

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