UPDATE: UnitedHealth Posts Upbeat Q3 Profit, Raises Forecast

UnitedHealth Group UNH reported better-than-expected earnings for the third quarter and raised its forecast for the year. UnitedHealth now projects full-year earnings of $5.60 to $5.65 per share, versus its earlier forecast of $5.50 to $5.60 per share. The Minnetonka, Minnesota-based company posted a quarterly profit of $1.6 billion, or $1.63 per share, versus a year-ago profit of $1.57 billion, or $1.53 per share. Its revenue gained 7% to $32.76 billion. However, analysts were expecting earnings of $1.53 per share on revenue of $32.76 billion. UnitedHealth's Medicare Advantage business added 25,000 more customers y/y. Revenue for its Medicare and retirement business rose around 4% to $11.5 billion, while revenue for UnitedHealthcare International business climbed 19% to $1.8 billion. Cash flows from operations surged to $3.2 billion in the quarter. “Our continued focus on fundamental execution in service to our customers is strengthening performance and momentum across our enterprise, and we are committed to accelerating that effort,” said Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group. UnitedHealth shares fell 0.80% to close at $82.16 yesterday.