What To Expect From UnitedHealth’s Q1 Earnings

UnitedHealth (NYSE:UNH), the largest health insurer in the U.S., is scheduled to announce its first quarter 2017 earnings on Tuesday, April 18. In full year 2016, UnitedHealth’s revenues grew 18% to $185 billion and operating income increased 21% to $13.3 billion. Robust performance by both the company’s pharmacy services business, Optum, as well as the health care benefits division, UnitedHealthCare, helped improve both UnitedHealth’s operating margin and net margin by 20 basis points over the prior year. Both these metrics had been consistently falling for the company since 2012.

In the first quarter ending March 2017, we expect the company’s Optum division to carry the growth momentum forward, taking advantage of inter-division integration at UnitedHealth that allows Optum to offer services to customers of the company’s health insurance businesses. The company is expected to report revenues of $48.3 billion and earnings of about $2.17 per share in the upcoming Q1 results, per consensus estimates compiled by Reuters. 

In full year 2017, UnitedHealth expects to generate revenue of $197 billion to $199 billion and adjusted earnings of $9.30 – $9.60 in full year 2017.

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