UnitedHealth Group Inc (NYSE:UNH) releases third-quarter results before the opening bell on October 13 and analysts are primed for a healthy increase in earnings as it benefits from a sustained rise in membership.
The Minnesota-based healthcare and wellbeing giant is expected to report a 13% increase in year-over-year revenue to around $91.4 billion.
The company owns insurer UnitedHealthcare (UNH) as well as Optum, which provides primary and surgical care, pharmacy benefits and services to providers, hospitals and insurers across the health system.
Analysts say the insurance side of the business has defensive properties that support it even when the economy is tough. UnitedHealthcare is expected to provide the bulk of revenue, with an 11% increase to about $69 billion.
The consensus forecast for total earnings per share is $6.33, up 9.3% from a year ago, according to Zacks Investment Research.
However, its 2Q earnings of $6.14 per share beat the Zacks Consensus Estimate by 3.7% on the back of an expanding customer base under UNH’s value-based care arrangements. A solid performance from Optum also contributed.
At the time, the company has raised its full-year net earnings outlook to a range of $23.45 to $23.75 and its adjusted net earnings to a range of $24.70 to $25 per share.
Contact the author at stephen.gunnion@proactiveinvestors.com