In the last 30 days, 25 analysts have increased their EPS estimates for this insurer.
UnitedHealth Group Incorporated (UNH)
From Internet Wealth Builder
UnitedHealth Group Incorporated (UNH) is one of the largest health care insurers in the U.S., serving more than 140 million people globally, across all its business lines. It also provides information and technology-enabled health services through its Optum division.
Third-quarter revenue grew 12.4% to $56.6 billion from $50.3 billion in the same quarter last year. Net earnings attributable to common shareholders were almost $3.2 billion ($3.24 per share, fully diluted). On a per share basis, that was up 29% from $2.51 per share in 2017. Both revenue and earnings came in ahead of analysts’ estimates and the share price jumped when the news was released.
The company reported an additional 2.8 million clients during the quarter, which is a remarkable growth rate for a mature business.
For the first nine months of the year, UnitedHealth reported revenue of almost $168 billion compared to $149 billion in the same period last year. Net earnings were $8.9 billion ($9.09 per share), up from $6.9 billion ($7.06 per share) a year ago.
The company raised its outlook for 2018 earnings per share to now approach $12.10, from the prior range of $11.80 to $12.05. Adjusted net earnings per share will now approach $12.80, from the prior range of $12.50 to $12.75.
UnitedHealth repurchased 1.9 million shares in the third quarter, bringing the year-to-date total to 15.7 million shares for a cost of $3.65 billion.
Buy. The company keeps posting impressive numbers, which should continue to drive the price even higher.
Gordon Pape, Internet Wealth Builder, www.buildingwealth.ca, 1-888-287-8229, October 22, 2018