UnitedHealth's stock slips after profit beat but sales came up shy

Shares of UnitedHealth Group Inc. UNH, +2.17% slipped 0.4% in premarket trading Wednesday, after the health care coverage company reported fourth-quarter profit that beat expectations but revenue that came up a bit shy. Net income rose to $3.54 billion, or $3.68 a share, from $3.04 billion, or $3.10 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $3.90, above the FactSet consensus of $3.78. Revenue grew 4.3% to $60.90 billion, below the FactSet consensus of $61.02 billion. Premiums increased 6.0% to $47.63 billion, topping the FactSet consensus of $47.51 billion, while products fell 10.8% to $7.63 billion to miss expectations of $7.80 billion. Services rose 13.6% to $5.22 billion, compared with expectations of $5.21 billion. Optum revenue increased 8.0%. The company affirmed its adjusted EPS guidance of $16.25 to $16.55. The stock has run up 20.8% over the past three months through Tuesday, while the Dow Jones Industrial Average DJIA, +0.36% has gained 7.1%.

Bookmark the permalink.

Comments are closed.