Good Execution Continuing To Boost UnitedHealth
Stephen Simpson, CFA
Stephen Simpson, CFA
Nov. 20, 2015, 3:18 AM
- UnitedHealth Group (NYSE:UNH), the nation's largest health insurer, is warning that it may pull out of the Obamacare exchanges after 2016 due to poor financial performance.
- The possible move raises new questions about the viability of President Obama's signature health law and follows the departure of more than half of the non-profit insurance cooperatives this year.
- "If they can't make money on the exchanges, it seems it would be hard for anyone," said Katherine Hempstead, who heads the insurance coverage team at the Robert Wood Johnson Foundation.
- Previously: Softness in Affordable Care Act sign-ups sinks insurers and managed health firms (Nov. 19 2015)
- Previously: UnitedHealth Group down 6% on lowered guidance (Nov. 19 2015)
Nov. 19, 2015, 3:01 PM
- Medical insurers and managed care providers are taking it on the chin today. UnitedHealth Group (UNH -5.5%) brought the rain with its softer earnings guidance as a result of weaker demand for individual insurance purchased through exchanges. It seems that the premium hikes, which the Affordable Care Act was supposed to curtail, are having their predictable effect.
- Previously: UnitedHealth Group down 6% on lowered guidance (Nov. 19)
- Related tickers: (AET -7.3%)(CI -5.7%)(HUM -4.2%)(CNC -9%)(ANTM -6.8%)(WCG -4.6%)(MGLN -4.4%)(HNT -5.2%)
Nov. 19, 2015, 9:14 AM
Nov. 19, 2015, 8:17 AM
- UnitedHealth Group (NYSE:UNH) eases 6% premarket on increased volume in response to its announcement of lowered earnings guidance for 2015, now projected to be ~$6 per share instead of $6.25 - 6.35 due to continued deterioration in individual exchange-compliant product performance (not as many people are signing up for insurance as hoped). The pre-tax earnings hit will be $425M or $0.26 per share, including $275M related to the advance recognition of 2016 losses. The company also plans to reduce its marketing efforts for individual exchange products next year.
- EPS expectations for 2016 are $7.10 - 7.30. More color will be provided on December 1 during its Investor Conference.
- Management will host a conference call this morning at 9:00 am ET to discuss the matter.
Oct. 29, 2015, 7:36 PM
- It's a full-on exit as Optum, the health services platform of UnitedHealth (NYSE:UNH), joins CVS and Express Scripts in cutting ties to Philidor, the specialty pharmacy linked to Valeant Pharmaceuticals (VRX -4.6%).
- Valeant has continued to slide through a postmarket session, now down 12.6%.
- Former employees and internal documents suggest that Philidor was altering doctors' orders in order to boost reimbursements from insurers and promote Valeant's brand-name drugs over less expensive generics.
- Meanwhile, Pershing Square's Bill Ackman is going to discuss his fund's investment in Valeant in a conference call at 9 a.m. ET tomorrow. Ackman had previously categorically denied the allegations in Citron Research's report that started Valeant on a tailspin (Shares have lost 32% in the seven trading days since, as of today's close).
- Previously: Valeant -10.9% after hours as Express Scripts, following CVS, boots Philidor (Oct. 29 2015)
- Previously: CVS terminates Philidor Rx from network; Valeant down 5% (Oct. 29 2015)
- Previously: Notes from Valeant's conference call (Oct. 26 2015)
- Previously: Citron Research slams Valeant Pharma; shares down 20%, trading halted (Oct. 21 2015)
Oct. 28, 2015, 6:15 PM
- Bloomberg reports UnitedHealth (NYSE:UNH) is in advanced talks to buy Helios, a provider of workers compensation claim and pharmacy benefit management services, for as much as $1.7B. A deal could be announced as soon as this week.
- Helios, owned by P-E firms Kelso & Co. and Stone Point Capital was created by the 2013 merger of PMSI Group and Progressive Medical. Earlier this year, UNH struck a $12.8B deal to buy pharmacy benefits manager Catamaran.
Oct. 15, 2015, 7:11 AM
- UnitedHealth Group's (NYSE:UNH) board of directors authorizes the repurchase of an additional $500M in stock beginning January 1 and continuing throughout the year. Transactions will be made on the open market or privately negotiated.
Oct. 15, 2015, 7:07 AM
- UnitedHealth Group (NYSE:UNH) Q3 results ($M): Total Revenues: 41,489 (+26.6%); Premiums: 31,801 (+9.8%); Services: 3,036 (+19.8%); Products: 6,482 (+500.2%); Investment & Other: 170 (-1.2%).
- Employer & Individual: 11,871 (+11.9%); Medicare & Retirement: 12,267 (+6.9%); Community & State: 7,392 (+20.6%); International: 1,287 (-29.3%).
- OptumHealth: 3,532 (+24.0%); OptumInsight: 1,585 (+26.8%); OptumRx: 14,407 (+79.8%).
- Medical Costs: 25,618 (+10.9%); Net Income: 1,618 (+1.0%); EPS: 1.65 (+1.2%); CF Ops: 528 (-83.5%).
- Medical Care Ratio: 80.6%.
Oct. 15, 2015, 5:58 AM
- UnitedHealth Group (NYSE:UNH): Q3 EPS of $1.65 beats by $0.01.
- Revenue of $41.5B (+26.7% Y/Y) beats by $1.32B.
Oct. 14, 2015, 5:30 PM
Oct. 14, 2015, 2:00 PM
- UnitedHealth Group (UNH -1.6%) reports Q3 results tomorrow before the open. Consensus view is EPS of $1.64 (+1%) on revenues of $40.2B (+23%).
Sep. 11, 2015, 10:34 AM
- UnitedHealth Group (UNH) initiated with Overweight rating and $140 (20% upside) price target by Morgan Stanley.
- Atara Biotherapeutics (ATRA -2.3%) initiated with Buy rating and $80 (74% upside) price target by Canaccord Genuity.
- Zoetis (ZTS +1.3%) upgraded to Outperform from Market Perform with a $53 (18% upside) price target by BMO Capital Markets.
- MannKind (MNKD -2.7%) downgraded to Underweight from Neutral by Piper Jaffray. Price target lowered to $1.50 (59% downside risk) from $4.00.
Jul. 30, 2015, 1:37 PM
- Unsurprisingly, Express Scripts (ESRX -0.6%) takes a dim view of the proposed price of the cholesterol-lowering PCSK9 inhibitor Praluent (alirocumab). Last Friday, co-developers Sanofi (SNY +1.6%) and Regeneron Pharmaceuticals (REGN +0.4%) announced that the wholesale acquisition cost (WAC) of the once-every-two-week injection will be $40 per day or $14,600 per year. This is several orders of magnitude above the cost of statins, which average $2 - 3 per day.
- WAC is the average price that wholesalers and distributors pay for the drug. Patients will, of course, pay quite a bit more.
- Pharmacy benefit managers, still feeling the pinch from Gilead's (GILD +1.8%) HCV meds Sovaldi and Harvoni, will likely ratchet up their opposition as Praluent's U.S. launch commences.
- Related tickers: (AET +0.9%)(CTRX)(CNC +0.9%)(CI -0.7%)(HUM)(MRK +0.3%)(OCR +0.4%)(UNH -0.7%)(CVS -0.5%)
Jul. 16, 2015, 11:42 AM
- Screen criteria: Market cap at least $500M; number of mutual fund investors at least equal to prior period; 50-day average turnover at least 400,000; annual sales at least $300M and EPS growth has accelerated the past three quarters.
- (ALKS +1%)(ALR +0.4%)(CERN +0.1%)(DVA +0.1%)(IMS +0.2%)(LLY +1%)(OMI +0.4%)(REGN +1.2%)(UNH -1.6%)(WAT +0.1%)
- This is not a list of buy/sell recommendations but rather a targeted list of stock that may be suitable for more in-depth research.
Jul. 16, 2015, 7:19 AM
- UnitedHealth Group (NYSE:UNH) Q2 results ($M): Total Revenues: 36,263 (+11.3%); Employer & Individual: 11,845 (+10.4%); Medicare & Retire: 12,559 (+6.6%); Community & State: 7,205 (+25.0%); International: 1,464 (-18.3%).
- Premiums: 31,961 (+10.8%); Services: 2,865 (+17.1%); Products: 1,223 (+17.9%); Investment & Other: 214 (-14.4%).
- Medical Costs: 26,026 (+10.6%); Operating Costs: 5,852 (+12.4%); Net Income: 1,585 (+12.6%); EPS: 1.64 (+15.5%); CF Ops: 3,432 (+41.7%).
- Medical care ratio: 81.4%.
- 2015 Guidance: Revenues: ~$154B from ~$143B; EPS: $6.25 - 6.35 from $6.15 - 6.30; CF Ops: $8.4B - 8.6B from $8.2B - 8.4B.
Jul. 16, 2015, 6:02 AM
- UnitedHealth Group (NYSE:UNH): Q2 EPS of $1.64 beats by $0.05.
- Revenue of $36.26B (+11.3% Y/Y) beats by $600M.
UnitedHealth Group, Inc. provides health care coverage, software and data consultancy services. The company operates through four business segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. The UnitedHealthcare segment includes UnitedHealthcare Employer & Individual,... More
Industry: Health Care Plans
Country: United States
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