UnitedHealth Raises Profit Targets on Higher Sales

By Dave Sebastian 

UnitedHealth Group Inc. boosted its profit guidance for the year as revenue growth from its network of health services, premiums and health-care plan membership fueled the company's third-quarter performance.

The company projects its 2019 per-share earnings to be between $14.15 and $14.25, compared with its previous forecast of $13.95 to $14.15. UnitedHealth said it expects adjusted per-share earnings to come in between $14.90 and $15 a share, compared with earlier projections of $14.70 a share to $14.90 a share.

The parent of the nation's largest health insurer posted sales of $60.35 billion for the third quarter, up 6.71% from the comparable quarter a year ago and beating the $59.76 billion analysts polled by FactSet had expected.

Sales for the Optum health-services business grew 13.39% to $28.8 billion compared with the year-ago period. Sales for the UnitedHealthcare health-benefits platform grew 4.79% to $48.1 billion during the quarter as commercial and Medicare Advantage membership grew, UnitedHealth said.

Overall, earnings rose to $3.67 a share, up 13.3% from the comparable period last year. Analysts were expecting $3.55 a share.

UnitedHealth reported an adjusted profit of $3.88 a share, topping analysts' estimates of $3.75 a share.

Shares of UnitedHealth, which have lost 11.45% in 2019, rose 2.45% in premarket trading.

(END) Dow Jones Newswires

October 15, 2019 06:46 ET (10:46 GMT)

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