UnitedHealth Lifts Full Year EPS Forecast As Q3 Earnings Top View

(RTTNews) - Health insurer UnitedHealth Group Inc. (UNH) Thursday said profit for the third quarter increased from the prior year, amid a 7 percent increase in revenues. Earnings per share topped estimates, while revenues met expectations. Further, citing the strong results, the company lifted its full year earnings forecast.

Net earnings attributable to UnitedHealth common shareholders advanced to $1.602 billion from $1.570 billion last year. Earnings per share rose to $1.63 from $1.53. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.53 for the quarter. Analysts' estimates typically exclude special items.

Total revenues grew to $32.759 billion from $30.624 billion. Analysts expected revenue of $32.76 billion for the quarter.

Segment-wise, UnitedHealthcare reported a 6 percent growth in revenues at $30 billion, amid strong growth in people served in the public and senior sector and commercial price increases, reflecting underlying medical cost trends and ACA reform impacts.

In the Optum health services business, revenue increased 21 percent to $12 billion. Within the business, each segment improved its operating margin.

Citing the strong quarterly results, the company expects full year net earnings in a range of $5.60 to $5.65 per share, up from the previous estimate of $5.50 to $5.60 per share. Revenues of around $130 billion are projected.

In July, the company had said revenues are anticipated to be in the area of $130 billion, up from the previous estimate of $128 billion to $129 billion.

Analysts expect the company to report full year profit per share of $5.58 on revenue of $130.14 billion.

The stock, which closed down 0.8 percent on Wednesday, is sliding 0.5 percent on Thursday's pre-market activity.