Unitedhealth Q2 Results Top Estimates; Lifts Low End Of FY EPS Forecast Range

(RTTNews) - Unitedhealth Group, Inc. (UNH) reported Tuesday higher profit in its second quarter, driven by strong revenue growth in both of its divisions. Adjusted earnings per share as well as top line beat analysts' estimates. Further, the company lifted the lower end of its earnings forecast range for fiscal 2016.

For the second quarter, net earnings attributable to shareholders increased to $1.75 billion from last year's $1.59 billion. Earnings per share were $1.81, higher than $1.64 last year.

Adjusted earnings were $1.89 billion or $1.96 per share, compared to $1.67 billion or $1.73 per share, in last year's second quarter. On average, 22 analysts polled by Thomson Reuters expected earnings of $1.89 per share. Analysts' estimates typically exclude special items.

Second-quarter earnings from operations grew 11 percent year-over-year to $3.2 billion.

The company said revenue for the quarter rose 28.2% to $46.49 billion from $36.26 billion last year. Analysts were looking for revenues of $45.05 billion.

The consolidated medical care ratio increased 30 basis points to 82 percent in the second quarter.

UnitedHealthcare segment revenues grew 14 percent to $37.6 billion and Optum revenues grew 52 percent to $20.62 billion.

In the quarter, UnitedHealthcare grew over the past year to serve over 2.1 million more people in domestic medical benefits markets, including 320,000 more people in the second quarter.

Looking ahead, the company narrowed its outlook for 2016 net earnings to a range of $7.25 to $7.40 per share and adjusted net earnings to a range of $7.80 to $7.95 per share.

Previously, the company was projecting earnings per share on a reported basis between $7.20 and $7.40, and adjusted earnings per share between $7.75 and $7.95.

Analysts now estimate earnings of $7.89 per share for the year.

Unitedhealth shares closed Monday's trading at $140.75, down 0.41 percent.