UnitedHealth Q4 Profit Tops Estimates; Affirms 2016 Financial Outlook

(RTTNews) - UnitedHealth Group (UNH) reported fourth-quarter net earnings attributable to common shareholders of $1.2 billion or $1.26 per share compared to $1.5 billion or $1.55 per share, last year. Adjusted earnings per share attributable to common shareholders was $1.40, for the quarter.

The company noted that its fourth-quarter after-tax margins declined year-over-year to 2.8 percent, due to the mix effect of strong growth in pharmacy care services and losses on individual exchange-compliant products and one state Medicaid contract. Excluding these losses from adjusted results, adjusted net earnings was $1.77 per share in the fourth quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.38 for the quarter. Analysts' estimates typically exclude special items.

Revenue increased to $43.60 billion from $33.43 billion last year. Analysts expected revenue of $43.23 billion for the quarter.

The company affirmed its 2016 financial outlook, including estimated revenues of more than $180 billion, rising net earnings growth to a range of $7.60 to $7.80 in adjusted earnings per share, and strong cash flows from operations in the range of $9.5 billion to $10 billion.