UnitedHealth Posts Outstanding Q3 Results, Beats Expectations

Today, UnitedHealth stock was trending upward after the company reported its third-quarter 2020 earnings results. The company reported better-than-expected quarterly results, and boosted its fiscal 2020 profit forecast.

UnitedHealth released its third-quarter 2020 financial results on Oct. 14 during premarket trading. The company has scheduled its earnings conference call today at 8:45 a.m. ET. Investors and analysts can access the presentation material and webcast under the investor relations section of the company’s website.

In the third quarter, UnitedHealth reported adjusted EPS of $3.51, compared with $3.88 in the third quarter of 2019. The adjusted EPS beat analysts’ average estimate of $3.10. UnitedHealth generated sales of $65.1 billion in the third quarter, 7.9 percent more than in the third quarter of 2019. The company beat analysts’ average sales estimate of $63.9 billion. UnitedHealth also raised its fiscal 2020 adjusted EPS guidance to $16.50–$16.75 from $16.25–$16.55.

UnitedHealth said its third-quarter earnings were led by the Optum unit, which manages its pharmacy benefits business. In the third quarter, Optum generated sales of $34.9 billion, 21.4 percent more than in the third quarter of 2019. UnitedHealth's medical loss ratio dropped to 81.9 percent from 82.4 percent in the same period a year ago. Wall Street was anticipating a medical loss ratio of 83.55 percent.

UnitedHealth stock trades on the NYSE under the ticker symbol “UNH.” The stock was up about 0.2 percent at $332 in premarket trading today as of 5:00 a.m. ET. The stock rose 0.4 percent on Oct. 13 and closed at $331.42 with a market capitalization of $314.9 billion.

UnitedHealth stock has risen by 2.5 percent in the last five days and 39.9 percent in the last year. The stock is trading 0.7 percent below its 52-week high of $333.70 and 76.6 percent above its 52-week low of $187.72.

As of Oct. 13, UnitedHealth’s dividend yield was 1.51 percent. Currently, the company pays an annual dividend of $5 per share. UnitedHealth has grown its dividend for the last ten years by an average of 20.4 percent each year.

Currently, Wall Street analysts' stock price forecast for UnitedHealth is $352.32, which suggests a 6.3 percent upside. Their highest target price of $392 indicates an 18.3 percent upside, while their lowest target price of $310 indicates a 6.5 percent downside. All 22 analysts tracking UnitedHealth recommend “buy.”