UnitedHealth Group Inc (NYSE:UNH) shares fell in early Friday trading despite the healthcare and wellbeing company reporting fourth-quarter earnings ahead of analysts’ expectations.
Minnesota-based UnitedHealth 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.
It attributed a 14% rise in revenue to $94.4 billion for the three months to December 31, 2023, to both businesses. However, medical costs — its biggest expense — rose 16% to $62.2 billion, pushing total operating costs 14% higher to $86.7 billion.
Adjusted earnings per share jumped 15% to $6.16, ahead of analysts’ consensus estimates of $5.98, according to Zacks Investment Research.
The company also reaffirmed its 2024 guidance, provided in a November business outlook, for adjusted net earnings of $27.50 to $28.00 per share.
“UnitedHealth Group enters 2024 well prepared to build on our efforts to improve patient care and consumer experiences broadly, and to continue delivering strong and balanced growth,” CEO Andrew Witty commented in a statement.
The company’s shares were down 3.1% at $523.28 by 9am in New York.