UnitedHealth Group Inc. (NYSE:UNH) had an impressive third-quarter supported by fundamental execution across all segments. Full-year and fourth-quarter results affirm strong performance impacted by COVID-19 costs and customer assistance initiatives.
Financial Results
Full year revenues were up 6.2% to $257.1 billion, reflecting broad based growth across key business segments. Fourth-quarter revenues were up 17% to $35.9 billion. Full-year earnings from operations increased 13.8% or $2.7 billion to $22.54 billion.
Earnings for the three months ending December came in at $2.52 a share, down by 35% year-over-year but above consensus estimates of 11 cents a share. Impressive Q4 results reflect the restoration of care patterns as the company ramped up efforts to provide support and relief efforts to correct economic imbalances triggered by the pandemic
UnitedHealth Group has already affirmed its full-year earnings outlook for 2021. The diversified healthcare company expects net earnings to average between $16.90 and $17.40 a share. Revenues are expected at between $277 billion and $280 billion, reflecting a 9% increase from the 2020 forecast.
UnitedHealth Group Outlook
Likewise, the healthcare company plans to serve 1.5 million people, supported by growth in Individual and Group Medicare Advantage. The company also expects Medicaid growth with new market entries in Kentucky, Indiana, and North Carolina.
Ahead of the Q4 and full-year earnings, UnitedHealth Group was up by more than 70% from March lows. The stock has been trading in a steep uptrend, with pullbacks acting as support levels from where buyers have come in and continued to push the stock higher.
Eighteen analysts have initiated coverage of the stock. Sixteen of the analysts rate the stock as a buy, with two insisting on a hold rating. The analysts have a price target of between $395 and $462 for the next 12 months. The average price target represents a 12.3% increase from the current $352 price.