UnitedHealth Group Profit Beats Estimates On Enrollments, Lifts Full-year View

(RTTNews) - Health insurer UnitedHealth Group Inc. (UNH) Thursday reported a higher second-quarter profit, benefited by consistent enrollment growth in each of its benefits businesses and higher revenues. Earnings per share topped analysts' expectations, while revenues missed view. The company also raised the lower end of its earnings outlook range for full-year 2013 and affirmed its revenue view.

As at June 30, UnitedHealthcare Medical served a total of 45,000 people, up from 35,875 in the prior year. UnitedHealth Group served 89.2 million individuals across all businesses at June 30, compared to 76.6 million as at June 30 last year. In the second quarter, net earnings attributable to common shareholders increased to $1.44 billion or $1.40 per share from $1.34 billion or $1.27 per share in the previous year. On average, 22 analysts polled by Thomson Reuters expected the company to earn $1.25 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter climbed 12 percent to $30.41 billion from $27.27 billion in the prior-year quarter. Seventeen analysts were looking for revenue of $30.50 billion for the quarter.

Revenues from premiums increased to $27.22 billion from $24.61 billion a year ago. Services generated revenues of $2.24 billion, higher than $1.80 billion in the preceding year.

Health services business unit Optum's revenues climbed 21 percent to $8.8 billion, reflecting double digit percentage growth rates at each of its three major businesses.

UnitedHealthcare, the company's network-based health care benefits provider unit, reported second quarter revenues of $28.3 billion, up 11 percent year-over-year.

Total operating costs were $28.01 billion, compared to $25.04 billion in the prior year.

For full-year 2013, the company now expects net earnings to be in the range of $5.35 to $5.50 per share, compared to the prior estimate of $5.25 to $5.50 per share.

The firm affirmed its projections for 2013 revenues of about $122 billion and cash flows from operations in a range of $7.2 billion to $7.6 billion.

Analysts expect the company to report earnings of $5.44 per share, on revenues of $122.53 billion for the year.

UNH closed Wednesday's regular trading at $66.23 on the NYSE. In the pre-market activity, the shares are currently up 1.24 percent.