UnitedHealth Reports Solid Q1 2016 Results, Raises Full Year Guidance
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.
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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.
Have more questions about United Health? See the links below:
- By How Much Did United Health Revenue & EBITDA Grow In The Last Five Years?
- How Has United Health’s Revenue Composition Changed In The Last Five Years?
- What Is United Health’s Revenue And EBITDA Breakdown By Operating Segments?
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