UnitedHealth Gains on Strong Q2 Results
UnitedHealth (UNH:US) shares traded higher on Friday after the healthcare giant reported stronger-than-expected Q2 results. The stock was up nearly 7% on Friday trading.
The company said it made a profit per share of $6.14, a notable improvement compared to the $5.57 reported for the same period last year. Analysts were looking for adjusted earnings per share of $5.95.
Revenue increased 16% year-over-year to $92.90 billion, topping the consensus by almost $2 billion. The company’s core UnitedHealthcare business saw its sales rise 13% YoY while the smaller business OptumRx recorded sales of $28.65 billion (up 15% YoY).
UnitedHealth served 52.8 million people in the second quarter, while reporting an operating cost ratio of 14.9%, up from the 14.6% reported a year ago.
“Our diverse health care capabilities and dedicated colleagues are enabling us to meet the needs of more people in more ways, driving substantial growth and expanding our opportunities to serve well into the future,” said Andrew Witty, chief executive officer of UnitedHealth Group.
Given the solid Q2 results, UNH raised its adjusted EPS outlook to a range of $24.70.
The company’s Q2 earnings report comes after several Congress members reported they traded UNH shares in recent months. Representatives Kevin Hern and Ro Khanna were buying UNH stock in late June while Congressman Michael McCaul sold some shares on May 10, when the stock closed at $490.07.
UNH shares were seen trading around $465 apiece on Friday.
