UnitedHealth Group Posted Strong 1Q18 Performance

UnitedHealth Group’s 1Q18 earnings results

On April 17, UnitedHealth Group (UNH) reported its 1Q18 earnings results. The company’s stock jumped ~3.6% on the day compared to its closing price on April 16, 2018. The SPDR Dow Jones Industrial Average ETF (DIA) registered a rise of ~0.89% on April 17 compared to its previous day’s close.

UnitedHealth Group Posted Strong 1Q18 Performance

UnitedHealth Group (UNH) registered revenues of $55.2 billion, representing YoY (year-over-year) growth of ~13.3%. This stellar growth was driven by consistently robust enterprise-wide performance. The company posted adjusted EPS (earnings per share) of $3.04, which represented YoY growth of ~28.3%.

The company reported double-digit earnings growth across all of its business segments, and its total earnings from operations rose ~18.8% to $4.1 billion.

UnitedHealth Group Posted Strong 1Q18 Performance

Double-digit growth across business segments

In 1Q18, UnitedHealth Group (UNH) reported double-digit earnings growth across its business segments. The company’s UnitedHealthcare business registered YoY sales growth of ~13.3% to $45.5 billion. The segment’s earnings from operations grew ~12.5% in fiscal 1Q18.

Every division in the UnitedHealthcare business registered double-digit growth. UnitedHealth Group’s Optum business reported revenues of $23.6 billion, which represented YoY growth of ~11.1%. Later in this series, we’ll discuss the fiscal 1Q18 performance of the UnitedHealthcare and Optum business segments.

UnitedHealth Group increased its guidance for 2018

UnitedHealth Group (UNH) raised its guidance for fiscal 2018 during its 1Q18 earnings results announcement on April 17. UNH expects to register adjusted net EPS of $12.40–$12.65, which is higher than its previous outlook range of $12.30–$12.60. The new guidance reflects YoY earnings growth of more than 24.0% at the midpoint.

Among UNH’s peers, Aetna (AET), Cigna (CI), and Anthem (ANTM) are expected to register sales growth of -1.3%, 6.9%, and 0.9%, respectively, in their recently reporquarters.