Shares of UnitedHealth Group Inc. UNH, +3.13% rallied 2.1% in premarket trade Tuesday, after the health insurer reported first-quarter earnings and revenue that beat expectations, and boosted its full-year profit outlook. Net income rose to $3.47 billion, or $3.56 a share, from $2.84 billion, or $2.87 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS grew to $3.73 from $3.04, above the FactSet consensus of $3.60. Total revenue increased 9.3% to $60.31 billion, beating the FactSet consensus of $59.69 billion. Premiums rose 7.8% to $47.51 billion, topping the FactSet consensus of $47.44 billion and products grew 20.4% to $8.07 billion to beat expectations of $7.42 billion, while services increased 5.2% to $4.32 billion to miss expectations of $4.53 billion. The company’s Optimum business grew revenue 11.9% to $26.4 billion. The company raised its guidance range for adjusted EPS to $14.50 to $14.75 from $14.40 to $14.70. UnitedHealth’s stock has lost 7.6% year to date through Monday, while the SPDR Health Care Select Sector ETF XLV, +0.40% has gained 4.2% and the Dow Jones Industrial Average DJIA, -0.10% has climbed 13.1%.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.