UnitedHealth's Decision To Sell Its Operations In Brazil To A Private Investor Leads To $7B Charge - What's On The Cards?

Zinger Key Points
  • The company expects to close the sale in the first half of 2024, subject to regulatory and other closing conditions.
  • The company's 2024 net earnings outlook will be impacted by the expected charge.

UnitedHealth Group Incorporated UNH disclosed on Friday that it has entered into an agreement to sell its operations in Brazil to a private investor. 

Upon closing, the company expects to record a charge of approximately $7 billion, which will be excluded from adjusted earnings, the majority of which is non-cash and due to the cumulative impact of foreign currency translation losses.

The company expects to close the sale in the first half of 2024, subject to regulatory and other closing conditions.

In November, the company issued a 2024 outlook, which included revenues of $400 billion-$403 billion (analyst consensus: $398.95 billion) and adjusted net earnings of $27.50-$28.00 per share (analyst consensus: $27.91). 

However, in connection with the latest action, the company's 2024 net earnings outlook will be impacted by the expected charge while the company confirms the 2024 adjusted earnings outlook.

Price Action: UNH shares are trading higher by 0.24% to $526.16 on the last check Friday.

Photo via Company

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: BiotechEquitiesM&ANewsGuidanceHealth CareAsset SalesMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!