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The Markets
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The Markets
by Proactive
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Medical technology & services

UnitedHealth Group Inc shares rise premarket after mixed third quarter results

Adjusted earnings-per-share came in at US$2.66, well above Wall Street’s consensus for US$2.56, but revenues fell short of market expectations of US$50.37bn, managing only US$50.32bn from the US$46.29bn recorded the year earlier

UnitedHealth Group Inc (NYSE:UNH) shares were slightly higher on thin premarket trade after it delivered a mixed bag of third quarter results on Tuesday.

In premarket trade, its shares were up 1.50% at US$196.10.

Its third quarter earnings beat market expectations but revenues however failed to meet consensus.

READ: UnitedHealth president David Wichmann to take over as CEO after boardroom shake-up

In the third quarter, the company said earnings rose to US$2.56bn, or US$2.51 per share, from US$1.98bn, or US$2.03 per share the year earlier.

Adjusted earnings-per-share came in at US$2.66, well above Wall Street’s consensus for US$2.56, the company said in a statement.

However, revenues fell short of market expectations of US$50.37bn, managing only US$50.32bn from the US$46.29bn recorded the year earlier.

The third quarter figures reflected the withdrawal from the Affordable Care Act markets, which resulted in US$1.6bn less in year-over-year consolidated revenues.

READ: UnitedHealth ups full-year earnings guidance but shares weak as healthcare bill scrapped

There was also the negative impact of the health insurance tax deferral, and a 17% hike in revenues pertaining to medical benefit products for seniors and Medicare products.

The company's pharmacy-benefit manager unit, Optum, saw revenues rise by 8% year on year.

The healthcare company is now guiding 2017 EPS to approach US$9.45 per share and adjusted net earnings to approach US$10.00 per share, against the previous guidance of US$9.20 to $9.35 per share and adjusted net earnings of US$9.75 to US$9.90 per share.

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