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%.
Sign up for Kiplinger’s Free E-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
-
Cuts to Social Security Benefits Could Top $21,000 for High-Income CouplesBenefits will be slashed 21% starting in 2033 if Social Security is not fixed, according to a new report. This is how much you could lose in annual benefits.
-
Stock Market Today: Stocks Rise in Choppy Day for MarketsModerna was the worst S&P 500 stock today after the vaccine maker slashed its R&D budget.
-
Stock Market Today: Stocks Rise in Choppy Day for Markets
Moderna was the worst S&P 500 stock today after the vaccine maker slashed its R&D budget.
-
Will the Fed Cut Rates in September? Here's What Experts PredictThe race is already on to predict the trajectory of future reductions to borrowing costs.
-
U.S. Dividend Payouts Accelerated in Q2, Led By Alphabet and MetaDividend payouts grew at an impressive rate in the second quarter, with Magnificent 7 stocks Alphabet and Meta helping fuel the increases.
-
Microsoft Eliminates Another 650 Positions at Xbox GamingMicrosoft stock is down slightly after announcing another round of layoffs in its Xbox gaming division. Here's what you need to know.
-
Moderna Stock Plunges as Vaccine Maker Slashes R&D Budget: What to KnowModerna stock is plunging Thursday after the COVID-19 vaccine maker announced plans to drastically cut its R&D spending to focus on new product approvals.
-
Estate Planning: How to Protect Family TreasuresItems like antiques, art and jewelry, as well as family photos, can carry huge emotional ties. The more specific you are in your plans, the better for everyone.
-
529 Plans: A Powerful Way to Tackle Rising Education CostsContributions to 529 plans grow tax-free and are not taxed when they are used to pay for qualified educational expenses for the beneficiary.
-
Stock Market Today: Stocks Stagger After CPI but Rebound to Post GainsA mixed CPI report had traders recalibrating their rate-cut bets.
