Thursday before the open UnitedHealth Group reported Q2 net income of $1.2 billion, up 22%. EPS came in at $0.87 cents a share, ahead of consensus estimates of $0.81. Revenue climbed 7% to $19.05 billion on a GAAP basis, slightly below consensus estimates of 19.07 billion. UNH increased the top end of its full year EPS guidance by $0.02 to a range of $3.43-$3.48/share. The company reported a consolidated medical care ratio of 80.5%, marking an improvement of 1.1% y/y and 2.2% sequentially. The ratio measures the number of claims and expenses to premiums. UNH shares rose 1.1% during composite trading Wednesday and are up 12.7% over the recent 12 month period.
Sources: Press Release, Bloomberg, Reuters, MarketWatch
Commentary: Additional Public Hearings Scheduled For Sierra Health/UnitedHealth Merger • Companies With 100% Earnings Beat Rates Over Last Few Years • Cramer's Take on UNH
Stocks/ETFs to watch: UnitedHealth Group (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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