UnitedHealth Group Inc UNH reported nearly $5.8 billion, up 11% Y/Y in Q3 profits. Group revenues rose 14.2% to $92.4 billion, topping analysts' estimates of $91.37 billion, while Optum revenues rose 21.6% to $56.7 billion.
UnitedHealth said adjusted profits came in at $6.56 a share, up 13.3% Y/Y, ahead of the consensus of $6.32.
UnitedHealth's medical cost ratio was pegged 70 basis points higher at 82.3% compared to 81.6% last year, driven by previously noted outpatient care, primarily serving seniors and business mix.
Overall premiums were up 12.2% to $72.3 billion, while operating costs rose 12.6% to $83.84 billion.
"As a result of our colleagues' steadfast focus on helping people access and receive the care they need, we are well-positioned to help even more people and continue to generate strong, diversified growth in the coming years," said CEO Andrew Witty.
Year-to-date, the total number of people served by UnitedHealthcare with medical benefits has increased by 1.1 million, driven by growth in the company's commercial and public sector businesses.
The number of consumers served with commercial benefits has grown by nearly 700,000 in 2023, reflecting the company's focus on affordable benefit plans.
Guidance: UnitedHealth said it sees 2023 earnings of $24.85-$25.00, up from its prior forecast of $24.70-$25.00 per share versus the consensus of $24.84.
The company said growth in the third quarter was driven by the increasing number of people served by Optum and UnitedHealthcare and the broadening scope of services offered.
Price Action: UNH shares are up 1.61% at $533.99 during premarket trading on the last check Friday.
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