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UnitedHealth (UNH) beats earnings, revenue estimates in Q1; shares up

April 16, 2024 6:06 AM EDT

Shares of UnitedHealth Group (NYSE: UNH) climbed 1.5% in premarket trading Tuesday after the company posted better-than-expected earnings and revenue for the fiscal Q1 2024.

The health insurance provider posted earnings per share (EPS) of $6.91, topping the consensus estimates of $6.62. Revenue came in at $99.8 billion, also above the projected $99.26 billion.

UNH said the net loss of $1.53 per share for the quarter was primarily due to the currency effects from the previously reported sale of its operations in Brazil and costs related to a cyberattack.

The impact of the cyberattack for the quarter was $0.74 per share, and UnitedHealth estimates the total impact for 2024 to be between $1.15 and $1.35 per share.

Looking ahead, UnitedHealth Group provided guidance for the full year 2024, expecting an adjusted EPS range of $27.50 to $28.00. This forecast is slightly above the consensus projection of $27.52.

The guidance adjusts for the direct response costs related to the cyberattack and the Brazil sale but includes an estimated $0.30 to $0.40 per share impact from business disruptions in Change Healthcare services.

It also updated the 2024 net earnings outlook to a range of $17.60 to $18.20 per share to reflect the Brazil sale and the estimated direct response costs of the cyberattack.

“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,” said Andrew Witty, CEO of UnitedHealth Group.

By Vahid Karaahmetovic



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