FX.co ★ UnitedHealth Trims FY24 Earnings View Even As Q3 Beats Market; Stock Down - Update

UnitedHealth Group Inc. (UNH) has announced an upward trend in its third-quarter financial results, although it has revised its earnings forecast for the fiscal year 2024 downward in certain areas. Notably, the company reduced its reported earnings expectations and lowered the upper range of its adjusted earnings guidance. In contrast to the same period last year, UnitedHealth showcased a profit increase, surpassing Wall Street predictions thanks to elevated revenues.

During pre-market trading on the NYSE, UnitedHealth shares declined by approximately 3.7%, settling at $583.00.

**Outlook**

UnitedHealth anticipates fiscal 2024 net earnings to range between $14.38 billion and $14.65 billion, or $15.50 to $15.75 per share. This forecast accounts for the impact of divestment activities in its South American operations recorded in the first half of 2024, as well as repercussions from a cyberattack on Change Healthcare. Previously, the company projected earnings of $15.95 to $16.40 per share for the year.

On an adjusted basis, UnitedHealth now estimates earnings between $25.48 billion and $25.75 billion, translating to $27.50 to $27.75 per share. This contrasts with the earlier adjusted earnings outlook of $27.50 to $28.00 per share, as stated at the November 2023 Investor Conference.

Analysts, on average, predict the company will earn approximately $27.7 per share for the year, based on data from Thomson Reuters, which generally excludes extraordinary items. The revised outlook takes into account an estimated $0.75 per share in business disruption impacts related to affected Change Healthcare services, an increase of about $0.10 per share compared to last quarter's estimate.

**Third Quarter Results**

For the third quarter, UnitedHealth reported earnings of $6.055 billion, equivalent to $6.51 per share, improving from $5.841 billion or $6.24 per share in the corresponding quarter of the previous year.

Adjusted earnings for this period stood at $6.651 billion or $7.15 per share, compared to last year's $6.137 billion or $6.56 per share. This performance surpassed analysts' expectations, which were set at $7.00 per share.

The company's revenue for the quarter climbed by 9.2%, reaching $100.820 billion, up from $92.361 billion a year ago. The growth was primarily driven by significant expansions in its Optum and UnitedHealthcare services.