Earnings Preview: UnitedHealth Group

UnitedHealth Group (UNH) is expected to report Q2 earnings before market open Tuesday, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are expecting a profit of 64c on revenue of $20.03B. The consensus range for EPS is 64c to 67c, with a revenue range of $19.69B to $20.39B, according to First Call.

Analyst Views

Possible revenue drivers include Medicaid growth and the accretive effect of the Sierra Health Plans and Fiserv additions. Negative drivers for this quarter include higher medicare cost trends and competitive pricing. On July 8, UnitedHealth was downgraded to Underperform from Buy at Merrill and on July 9, Citigroup noted that while more downside risk is possible, the valuation is attractive at current levels. The firm believes EPS risk is already priced in and has a Buy rating on the shares with a $35 target.

Comments

[longtermstocks:]

looks like a buy

2008 Aug 12 09:38 PM