Earnings Preview: UnitedHealth Group

UnitedHealth Group (UNH) is expected to report Q3 earnings Tuesday, October 20 before the market open with a conference call scheduled for 8:45am ET.

Guidance

Analysts are looking for EPS of 77c on revenue of $21.52B. The consensus range is 71c-82c for EPS, and $21.86B-$21.92B for revenue, according to First Call.

Analyst Views

In July, the company reported Q2 EPS of 73c, beating analysts' expectations of 72c and revenue of $21.66B which was slightly lower than consensus estimates of $21.75B. Positive drivers for this quarters' results include the additions of about 250,000 Medicare Advantage members and others from the Unisom acquisition. Mitigating those positive drivers is decreasing enrollment due to the weakened economy and higher unemployment.

In September, Citigroup downgraded shares of UnitedHealth to Hold from Buy citing commercial pricing concerns and Medicare headwinds. The firm keeps a $32 target on shares. On October 13, UnitedHealth was reinstated with a Buy and $30 target at BofA/Merrill.

Comments

[ozcutty:]

89 cents, take that nay sayers. No brainer really, they are still generating 4billion in cash which they use to buy back shares. With the share price so beaten down, thats a lot of shares!

Oct 20 06:47 AM