Image Source: Unsplash
 

UnitedHealth Group (NYSE: UNH) reported robust financial results for the third quarter of 2024, showcasing substantial growth across its business units.

The company’s revenues soared to $100.8 billion, marking an impressive year-over-year increase of $8.5 billion. This growth was primarily driven by the expansion in the number of people served by both UnitedHealthcare and Optum.

Earnings from operations reached $8.7 billion, despite the adverse impact of a cyberattack, which accounted for $0.3 billion in unfavorable effects. When adjusted for these impacts, earnings from operations were $9.0 billion, reflecting the company’s resilience and operational strength.

The medical care ratio for the quarter was reported at 85.2%, up from 82.3% in the previous year. This increase was attributed to factors such as CMS Medicare funding reductions and changes in business and member mix.

The operating cost ratio improved slightly to 13.2%, down from 13.3% in the second quarter, indicating ongoing cost efficiency efforts. Cash flows from operations were robust, totaling $14.0 billion, which was 2.2 times the net income, reflecting the timing of cash receipts.

UnitedHealth Group also returned over $9.6 billion to shareholders through dividends and share repurchases in the first nine months of 2024.
 

UnitedHealth Group Reports Better than Expected Q3

UnitedHealth Group’s third-quarter performance exceeded market expectations in several key areas. The company reported adjusted earnings per share (EPS) of $7.15, surpassing the anticipated EPS of $7.02.

This indicates the company’s ability to manage unforeseen challenges, such as the cyberattack, while still delivering strong financial results. Revenues also exceeded expectations, coming in at $100.8 billion compared to the forecasted $99.14 billion. This outperformance underscores the company’s robust growth strategies and effective execution across its business segments.

The company’s operating earnings from UnitedHealthcare were $4.2 billion, reflecting a slight decrease from the previous year’s $4.6 billion. However, the revenue growth of $5 billion year-over-year to $74.9 billion highlights the expansion in the number of people served domestically. Optum, another significant business segment, reported a revenue increase of $7.2 billion over the prior year, with operating earnings of $4.5 billion.

The adjusted operating earnings of $4.8 billion, which excluded costs related to the cyberattack, further demonstrate Optum’s strong performance and the company’s overall resilience.
 

UnitedHealth Group Expects Net EPS in Range of $15.50 to $15.75 for Full Year 2024

UnitedHealth Group has provided guidance for the full year 2024, projecting net earnings per share in the range of $15.50 to $15.75.

The company also maintained its adjusted net earnings outlook between $27.50 and $27.75 per share, despite absorbing an estimated $0.75 per share in business disruption impacts from the Change Healthcare cyberattack. This guidance reflects the company’s confidence in its ongoing operations and strategic initiatives, even amidst external challenges.

UnitedHealth Group continues to focus on expanding its reach and improving service offerings. UnitedHealthcare’s innovative product portfolio has resonated with consumers and employers, contributing to a year-to-date increase of 2.4 million in the number of consumers served domestically.

The company’s Medicare Advantage plans are set to reach 96% of eligible Medicare beneficiaries in 2025, aligning with the recently released CMS Stars scores. Additionally, Optum’s growth is driven by its value-based care offerings and the expansion of pharmacy services, positioning the company well for future growth.

More By This Author:

3 Stocks Worth Holding In The Upcoming Holiday Season
Adobe Launches AI Video Tool, Stock Climbs Over 3%
Today’s Big Earnings Results Summarized: BLK, JPM, And WFC