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UnitedHealth Group (NYSE:UNH) is scheduled to report its Q2 2012 results on July 19, 2012, before the market opens. The street expects EPS and revenue of $1.19 and $27.34B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from UNH and the news from its closest competitors.

Unitedhealth Group, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.31 EPS, beating analyst estimates of $1.17.

Unitedhealth Group, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.19 based on 20 analysts' estimates, up from $1.16 a year ago. Revenue estimates are $27.34B, up from $25.23B a year ago. The median target price by analysts for the stock is $70.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 19, 2012, Cantor Fitzgerald initiated Buy rating for the company.

Latest News

  • On June 6, 2012, UnitedHealth Group Inc announced that its Board of Directors authorized payment of a cash dividend of $0.2125 per share, to be paid on June 22, 2012, to all shareholders of record of UnitedHealth Group common stock as of the close of business on June 15, 2012.
  • On April 19, 2012, UnitedHealth Group Inc announced that it has increased guidance for fiscal 2012 and expects net earnings to a range of $4.80 to $4.95 per share and revenues of $109 billion to $110 billion.
  • On March 19, 2012, UnitedHealth Group Inc announced that its Military & Veterans Services business unit has been awarded the Department of Defense's TRICARE Managed Care Support contract to provide health care services for active duty and retired military service members and their families in the West Region.
  • On February 9, 2012, UnitedHealth Group Inc announced that, the Company has completed its acquisition of XLHealth Corporation, a sponsor of Medicare Advantage health plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness and those eligible for Medicaid (dual eligibles).
  • On January 19, 2012, UnitedHealth Group Inc announced that it continues to estimate fiscal 2012 revenues in the range of $107 billion to $108 billion and net earnings in the range of $4.55 to $4.75 per share.

Competitors

Unitedhealth Group, Inc. operates in Health Care Plans industry. The company could be compared to Aetna Inc. (NYSE:AET), Cigna Corp. (NYSE:CI), Coventry Health Care Inc. (CVH), Humana Inc. (NYSE:HUM), and WellPoint Inc. (WLP). Below is the table comparison of the most important ratios between these companies and the industry.

Unitedhealth Group, Inc. key ratio comparison with direct competitors

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)UNH Chart

UNH data by YCharts

Competitors' Latest Development

  • On July 12, 2012, CIGNA Corporation announced that it has signed an agreement to acquire 51% of Finans Emeklilik, the life and pension provider in Turkey through in-branch banking channels, thereby forming a joint venture (JV) partnership with Finansbank to market life and pension products in the country.
  • On July 9, 2012, Humana, Inc. announced that it has completed its acquisition of SeniorBridge, a national chronic-care provider known for providing in-home care management and caregiving services for seniors.
  • On July 9, 2012, WellPoint Inc and AMERIGROUP Corporation announced that they have entered into a definitive agreement through which WellPoint will acquire Amerigroup.
  • On July 3, 2012, Reuters reported that Thousands of doctors in California are suing Aetna, Inc. claiming the company routinely denies patients access to out-of-network doctors even when the patient has purchased a policy giving them the right to choose providers.
  • On June 27, 2012, Reuters reported that CIGNA Corporation agreed to buy some Medicare Advantage plans in Texas and Arkansas from health insurer Humana Inc. The plans in the three markets - Amarillo, Longview-Marshall and Texarkana - will allow Cigna's HealthSpring unit to expand in Texas and Arkansas, the company said in a statement.
  • On June 20, 2012, WellPoint Inc announced the completion of its acquisition of 1-800 CONTACTS, Inc. 1-800 Contacts is the retailer of contact lenses in the U.S., providing consumers with a convenient and affordable way to purchase contact lenses through its easy-to-remember, toll-free telephone number.
  • On June 19, 2012, Coventry Health Care, Inc. announced that it is reiterating its GAAP EPS guidance of $3.10 to $3.30 for fiscal 2012.
  • On June 19, 2012, Humana, Inc. announced that it is still comfortable with the guidance for fiscal 2012.
  • On June 18, 2012, Humana Inc. and Novo Nordisk Inc. announced a one-year research partnership to explore diabetes treatment and care. Together, researchers will identify opportunities to change how patients might be treated to improve quality and outcomes for the millions of people who battle diabetes.
  • On June 16, 2012, Reuters reported that WellPoint Inc has agreed to pay $90 million to settle a class-action lawsuit against its Anthem unit over accusations the Company did not fairly compensate former members when Anthem was converted from a mutual company into a stock company.
  • On June 4, 2012, Aetna, Inc. announced today a multi-year pharmacy benefit management agreement with Assurant Health, a provider of major medical, supplemental and fixed-benefit health plans for individuals, families and small employers.
  • On June 4, 2012, WellPoint Inc announced that Fenway Partners has entered into an agreement to sell 1-800 CONTACTS to WellPoint, Inc. Financial terms of the transaction were not disclosed.
  • On June 1, 2012, CIGNA Corporation announced that for fiscal 2012, it expects to have EPS growth of or EPS of $5.20 to $5.55 per share. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $5.52 for fiscal 2012.
  • On May 18, 2012, Aetna, Inc. announced that it declared a quarterly cash dividend of $0.175 per share on the Company`s common stock. The dividend is payable on July 27, 2012, to shareholders of record at the close of business on July 12, 2012.
  • On May 16, 2012, WellPoint Inc announced that its Board of Directors declared a quarterly dividend to shareholders for the second quarter of 2012 of $0.2875 per share.
  • On May 10, 2012, American Financial Group, Inc. announced that it reached a definitive agreement to sell its Medicare Supplement and Critical Illness businesses (headquartered in Austin, Texas and doing business as Great American Supplemental Benefits Group) to CIGNA Corporation for approximately $295 million in cash, subject to post-closing adjustments based upon statutory capital and surplus of transferred businesses as of the closing date.
  • On May 4, 2012, Aetna, Inc. announced that it has completed a public offering of $250 million of 1.75% Senior Notes due in 2017 and $500 million of 4.50% Senior Notes due in 2042.
  • On May 3, 2012, CIGNA Corporation announced that it now estimates fiscal 2012 consolidated adjusted income from operations to be in the range of $1.52-$1.63 billion, or $5.20 to $5.55 per share.
  • On April 30, 2012, Humana, Inc. announced that the Board of Directors increased the Company's quarterly cash dividend to $0.26 per share for stockholders of record as of June 29, 2012 payable on July 27, 2012.
  • On April 27, 2012, Coventry Health Care, Inc. announced that for fiscal 2012, it expects consolidated revenue in the range of$14.02-$14.23 billion and earnings per share (NYSEARCA:EPS) in the range of $3.10-$3.30. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $14.08 billion and EPS of $3.26 for fiscal 2012.
  • On April 25, 2012, WellPoint Inc announced that for fiscal 2012, it expects net income to be at least $7.84 per share, including net investment gains of $0.19 per share from the first quarter of 2012.

Technical Overview


The stock has a market capitalization of $58.14B and is currently trading at $54.98 with a 52 week range of $41.27 - $60.75. The stock's year-to-date performance has been 11.30%. It is currently trading above 200 SMA, but below 20 and 50 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: UnitedHealth Group Incorporated