UnitedHealth reported revenue growth of 3 quarters by 9%, helped by increased revenue Optum 21.4%. The Americans have reduced the number of requests for non-urgent medical care because of the pandemic, which has reduced the loss of UnitedHealth insurance.
Shares of UnitedHealth Group (UNH), increased by almost 35% over the past 12 months, fell 2.9% on Wednesday with a high of $331,4 made on Tuesday.
Largest insurance company in the US reported a 10% decline in earnings per share 3rd quarter to $3.51, however, this turned out to be $0.42 to greater than the analyst estimate of $3,09.
Total quarterly revenue grew 9% (compared to the same quarter of the previous year) and amounted to $65,1 billion, also above average analytical assessment of $63,96 billion to See the quarterly history of revenue and profit for UnitedHealth last 2 years can link.
The revenues of the largest division of UnitedHealth health insurance rose 5% to $50.4 billion decline in the number of sales of private commercial insurance because of job cuts during a pandemic, partly offset by a rise in the number of clients for government programs, Medicare Advantage and Medicaid.
Division of medical services Optum traditionally has shown strong sales growth: 21% to $34.9 billion, and its profit increased by 8.33% to $2.6 billion.
UnitedHealth reported that the medical loss ratio (MLR) – the percentage of insurance payments for medical services – is 81.9% lower than last year to 82.4% and estimates in 83,55%. At the same time, the rate at 81.9% said the resumption of the appeals of the Americans for medical help after MLR in the second quarter amounted to 70.2% due to fears of clients to contact medical institutions in the midst of a pandemic COVID-19.
The user UnitedHealth warned investors that profit growth in the last two quarters due to the delayed treatment customers will be reduced in future quarters, as Americans renew call for medical help after a pandemic.
“Future periods will reflect a resumption of more typical schemes of care and continuation of treatment costs and test COVID-19 due to the ongoing uncertain economic recovery,” said company UnitedHealth.
Oppenheimer analyst Michael Wiederhorn reiterated a “buy” recommendation for shares of UnitedHealth with a target price of $353, which represents an increase of 9.7% from the closing price on Wednesday.
Widerhorn noted that business Optum is a good addition to the main unit of UnitedHealthcare’s medical management services and continues to bring a large share of the profits.
UnitedHealth raised its annual earnings per share Outlook for 2020 range $16,25 – $16,55 to $16,50 – $16,75.