Why Is UNH Stock Soaring After Earnings?
UnitedHealth beat expectations for the first quarter, sending UNH stock up over 5%. Here's what you need to know.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
UnitedHealth Group (UNH) stock is soaring over 5% in Tuesday's session after the company beat both earnings and revenue estimates for its fiscal 2024 first quarter.
UNH stock can certainly use the boost considering it was down 15% for the year-to-date heading into today's trading. This makes it one of the worst Dow Jones stocks of 2024 so far.
The company reported revenue of $99.8 billion and adjusted earnings of $6.91 per share for the three months ended March 31, which exceeded analysts' estimates of $99.3 billion and $6.61 per share, respectively. On a year-over-year basis, UnitedHealth's revenue increased 8.6% and its adjusted earnings per share (EPS) were up 10.4%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also in the quarter, UnitedHealth's medical care ratio (MCR) expanded 210 basis points to 84.3% from 82.2% in the year-ago period, which it said was due to "revenue effects of the Medicare funding reductions, considerations driven by the Change Healthcare cyberattack, including accommodations to support care providers, medical reserve and development effects, and business mix."
The MCR measures medical costs as a percentage of premium revenue, and the lower the figure, the better.
UnitedHealth's adjusted EPS does not include a $683 million impact or approximately 74 cents per share, net of tax, incurred from a cyberattack at its Change Healthcare unit. For the full year, the company expects the impact to be between $1.15 per share and $1.35 per share.
"The core story at UnitedHealth Group remains our colleagues delivering improved experiences for the people we serve and driving balanced growth even while swiftly and effectively addressing the attack on Change Healthcare," UnitedHealth CEO Andrew Witty said in a statement.
As a result of its strong performance in the first quarter, UnitedHealth maintained its full-year adjusted EPS outlook of $27.50 to $28.00.
Earnings season is just getting started
The earnings calendar is heating up as the season gets rolling. After the market closes today, we'll get earnings reports from United Airlines (UAL), J.B. Hunt Transport (JBHT) and Interactive Brokers (IBKR), amongst others.
And before the market opens tomorrow, we'll get reports from ASML (ASML), Travelers Companies (TRV), Abbott Laboratories (ABT) and Prologis (PLD), amongst others.
Related Content
-
The Cost of Leaving Your Money in a Low-Rate AccountWhy parking your cash in low-yield accounts could be costing you, and smarter alternatives that preserve liquidity while boosting returns.
-
I want to sell our beach house to retire now, but my wife wants to keep it.I want to sell the $610K vacation home and retire now, but my wife envisions a beach retirement in 8 years. We asked financial advisers to weigh in.
-
How to Add a Pet Trust to Your Estate PlanAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to Chance
Adding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
-
Nasdaq Slides 1.4% on Big Tech Questions: Stock Market TodayPalantir Technologies proves at least one publicly traded company can spend a lot of money on AI and make a lot of money on AI.
-
I Met With 100-Plus Advisers to Develop This Road Map for Adopting AIFor financial advisers eager to embrace AI but unsure where to start, this road map will help you integrate the right tools and safeguards into your work.
-
The Referral Revolution: How to Grow Your Business With TrustYou can attract ideal clients by focusing on value and leveraging your current relationships to create a referral-based practice.
-
This Is How You Can Land a Job You'll Love"Work How You Are Wired" leads job seekers on a journey of self-discovery that could help them snag the job of their dreams.
-
Fed Vibes Lift Stocks, Dow Up 515 Points: Stock Market TodayIncoming economic data, including the January jobs report, has been delayed again by another federal government shutdown.
