UnitedHealth Reports Solid Q1 2016 Results, Raises Full Year Guidance

+22.36%
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Market
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UNH: UnitedHealth Group logo
UNH
UnitedHealth Group

UnitedHealth Group (NYSE:UNH) reported robust Q1 2016 earnings Tuesday with overall revenues growing over 24.5% year-over-year (y-o-y) to $44.5 billion and adjusted earnings per share rising about 17% y-o-y to $1.81. ((SEC 8-K Filing, April 19 2016)) A double-digit growth in premiums helped improve the company’s medical care ratio (expenses to premiums) by 30 basis points y-o-y to 81.7% in the quarter.

We have a price estimate of $121 for UnitedHealth’s stock, which is slightly below the current market price. The table below provides an overview of the company’s earnings.

unh-6    unh-12                                                                                                                                                                                                       unh-9                                                        unh-10

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Buoyed by the strong quarterly results, the company raised its guidance for full year 2016 and now expects to cross $182 billion in consolidated revenue for the year. In terms of earnings per share, UnitedHealth raised its full year guidance by $0.15 to $7.75-7.95 owing to lower expected income tax rate and intangible amortization.unh-11

 

 

 

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Health
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