UnitedHealth Raises FY17 View Above Market After Q1 Tops Estimates - Quick Facts

(RTTNews) - UnitedHealth Group Inc. (UNH), a diversified health and well-being company, Tuesday raised its fiscal 2017 financial outlook, now expecting GAAP net earnings of $9.10 to $9.30 per share, adjusted net earnings of $9.65 to $9.85 per share, and revenues of approximately $200 billion.

The company previously expected net earnings of $8.75 to $9.05 per share, adjusted earnings per share of $9.30 to $9.60, and revenues of $197 billion to $199 billion.

On average, analysts polled by Thomson Reuters expect earnings of $9.51 per share on revenues of $198.98 billion for the year. Analysts' estimates typically exclude special items.

In its first quarter, net earnings attributable to shareholders grew to $2.19 billion from $1.61 billion last year. Earnings per share climbed 34 percent to $2.23 from $1.67 last year.

Adjusted net earnings were $2.37 per share, compared to $1.81 per share a year ago.

For the first quarter, revenues increased 9.4 percent to $48.7 billion from last year's $44.5 billion.

Analysts expected earnings of $2.17 per share on revenues of $48.27 billion for the quarter.

The company noted that UnitedHealthcare's withdrawal from ACA Individual markets, combined with the 2017 health insurance tax deferral, reduced consolidated revenues by approximately $1.6 billion and lowered the revenue growth rate by 4.1 percent.

The first quarter 2017 consolidated medical care ratio of 82.4 percent increased 70 basis points year-over-year.

In pre-market activity, UNH shares were gaining 2.26 percent at $170.95.