UnitedHealth Group announced this morning that accounting errors resulting from its backdating of options will result in a reduction in past earnings dating back to 1995 of $1.55 billion.The company has promised to be fully up to date in all its financial reporting by March 15. For FY2006, UnitedHealth's EPS was $2.97, up 29% from 2005. Revenue rose 54% (21% excluding acquisitions) to $71.54 billion from $46.43 billion during the year earlier period; earnings from operations rose 37% to $6.98 billion. The news sent shares higher by $0.29, or 0.55%, to $53.25 in pre-market trading.
• Sources: Press Release, MarketWatch, Reuters, Wall Street Journal
• Commentary: UNH Q4 Profit Beats, But Revenue Misses • UnitedHealth Robust Despite Backdating - Barron's • UnitedHealth to Restate 12 Years' Worth of Earnings Following Options Scandal
• Stocks and ETFs to watch: UnitedHealth Group Inc. (UNH). Competitors: Aetna (AET), Cigna (CI), Coventry Health Care (CVH), Humana (HUM), WellPoint (WLP). ETFs: iShares Dow Jones US Healthcare Provider (IHF), Vanguard Health Care ETF (VHT), Health Care Select Sector SPDR (XLV)
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