UnitedHealth Results Top Expectations on Revenue Growth

By Michael Calia 

UnitedHealth Group Inc. said results in its December quarter topped expectations as revenue from premiums surged.

Like its fellow health insurers, UnitedHealth has sought to contain costs related to medical care, particularly as expensive, high-profile treatments for hepatitis C and cancer enter the market. Last month, in a bid to explore expense-controlling options, the company unveiled a test program in which it will pay MD Anderson Cancer Center a flat rate for a year's worth of treatment for certain patients.

In the quarter ended Dec. 31, operating costs increased 7% to $30.67 billion.

The company said it served 88.5 million individuals across all of its businesses as of Dec. 31, up from 88.2 million a year ago.

Overall, UnitedHealth posted earnings of $1.51 billion, or $1.55 a share, up from $1.43 billion, or $1.41 a share, a year earlier.

Revenue improved 7.4% to $33.43 billion.

Analysts had projected a per-share profit of $1.50 and revenue of $33.1 billion.

Revenue from services increased 17%, while revenue from premiums increased 6%.

For the new year, UnitedHealth forecast per-share earnings of $6.00 to $6.25 and revenue of $140.5 billion to $141.5 billion. Analysts polled by Thomson Reuters had been expecting earnings of $6.17 a share and revenue of $140.9 billion.

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