Shares of UnitedHealth Group Inc. (UNH) surged 2.7% in premarket trading on Friday, bouncing back from a 19-month low. The health care services and insurance company reported better-than-expected second-quarter earnings and revised its full-year outlook, citing strong and well-balanced growth.
Strong Performance in Second Quarter
UnitedHealth Group’s net income rose to $5.47 billion, or $5.82 per share, compared to $5.07 billion, or $5.34 per share, in the same period last year. Excluding nonrecurring items, the company’s adjusted earnings per share of $6.14 surpassed the FactSet consensus of $5.99.
Revenue Growth
Total revenue for the company increased by 15.6% to $92.90 billion, surpassing the FactSet consensus of $90.75 billion. UnitedHealthcare revenue rose by 13.0% to $70.2 billion, while Optum revenue grew by 24.8% to $56.3 billion.
Positive Outlook
UnitedHealth Group’s medical care ratio was 83.2%, slightly higher than last year’s 81.5% and just above the FactSet consensus of 83.1%. The company raised its adjusted earnings per share guidance range for 2023 to $24.70 to $25.00, up from the previous range of $24.50 to $25.00.
Stock Performance
The stock price of UnitedHealth Group reached its lowest point since December 2021 before showing a 12.5% decline over the past three months. In comparison, the Dow Jones Industrial Average recorded a 1.5% increase during the same period.
UnitedHealth Group Inc.’s impressive earnings results and improved outlook demonstrate its resilience in the market despite recent challenges.
