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UNH Surpasses Consensus Estimates in First Quarter

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Revenue performance

In its first-quarter earnings press release, UnitedHealth Group (UNH) reported revenues of $60.31 billion, a YoY rise of 9.28% and ahead of consensus estimates by $590 million. This performance was mainly driven by solid YoY revenue growth of UnitedHealthcare Medicare & Retirement business, OptumHealth business, and OptumRx business.

The company’s UnitedHealthcare business reported revenues of $48.90 billion, a YoY rise of 7.56%. The Optum business reported revenues of $26.36 billion, which is a YoY rise of 11.69%.

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According to the first-quarter earnings press release, in the first quarter, the UnitedHealthcare Medicare & Retirement business reported revenues of $21.10 billion, a YoY rise of 11.5%. UnitedHealthcare Employer & Individual business reported revenues of $14.08 billion, a YoY rise of 4.99%. The UnitedHealthcare Community & State business reported revenues of $11.18 billion, a YoY rise of 4.79%. Finally, UnitedHealthcare Global business reported revenues of $2.53 billion, a YoY rise of 3.47%.

In the first quarter, OptumHealth reported revenues of $6.71 billion, a YoY rise of 16.56%. OptumRx reported revenues of $17.82 billion, a YoY rise of 10.62%. OptumInsight reported revenues of $2.19 billion, a YoY rise of 5.80%.

EPS performance

UnitedHealth Group reported non-GAAP EPS of $3.73, a YoY rise of 22.70% and ahead of the consensus estimate by $0.13. This performance was mainly driven by solid revenue growth as well as margin expansion of the company. The company also reported a GAAP EPS of $3.56, a YoY rise of 24.04%.

Wall Street analysts have projected UnitedHealth Group’s non-GAAP EPS to be $3.47, $3.87, and $3.70, in the second, third, and fourth quarters of fiscal 2019, respectively. These estimates imply a YoY change of 10.36%, 13.43%, and 12.90%, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

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