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UnitedHealth Posts Outstanding Q3 Results, Beats Expectations

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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.

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UnitedHealth Earnings Call
Source: Pixabay

When did UnitedHealth report its earnings?

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.

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UnitedHealth’s earnings report highlights

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.

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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.

What is UnitedHealth’s stock price today?

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.

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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.

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What is UnitedHealth’s dividend yield?

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.

What is UnitedHealth’s stock forecast?

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.”

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