UnitedHealth Group Inc. (NYSE: UNH) has confirmed that it will release its earnings on Thursday, October 14, 2021, before markets open.
What to look for
During the second, the company reported solid earnings thanks to the robust performance of the Optum unit. Optum manages drug benefits and providers healthcare data analytics solutions and has been vital to the company helping it survive fluctuations in the primary health insurance segment impacted by pandemic-induced changes in medical services use. In addition, the Optum segment is expected to continue impacting earnings considering the company recently raised its annual net earnings outlook.
Earnings: Stockearning’s Estimated EPS is expected to be better than estimates considering the company has topped EPS estimates in all the last 12 quarters (100%). When the company released its Q2 result, it raised full-year net earnings guidance to between $17.35 and $17.85 per share with adjuted earnings ranging from $18.3 a to $18.8 per share. In the last quarter, the company reported earnings of $4.7 per share, topping estimates of $4.41 per share.
Revenue: The company posted revenue of $71.3 billion in Q2 2021, a 15% QoQ increase attributed to well-diversified growth at Unitedhealthcare and Optum subsidiaries. Optum revenue improved 17.2% YoY to $38.3 billion thanks to contribution from OptumHealth, OptumRx and OptumInsight. CEO Andrew Witty said that the company's colleagues' compassion, commitment, and efforts to help in health and system performance strengthens the company's resolve to deliver strong results.
Stock movement: Since the last earnings release, UnitedHealth shares have lost 1.5. Following the earnings release, share prices were UP25 times in the previous 47 quarters. So, the historical price reaction suggests a 53% chance of the stock going UP after earnings release. According to the Stockearning algorithm, the predicted stock move on the first day is 2%, and the predicted move on the seventh day is 4%.
What analysts are saying
SVB Leerink analyst Whit Mayo commenced coverage on UnitedHealth with a “Buy” rating and a price target of $480.
Also, Cowen analyst Gary Taylor initiated coverage in the stock with a "Buy" rating and a price target of $478.Taylor said that UnitedHealth's scale and diversification comprise a sustainable competitive edge in the health insurance sector. In addition, the analyst believes that UnitedHealth's diversified business model and potential OptumCare revenue upside are “undervalued.”
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