Takeaways
- UnitedHealth Group third-quarter profits and revenues beat estimates as medical claims costs fell from the second quarter.
- Revenues jumped at both Optum Health Services and in the company's UnitedHealthcare units.
- UnitedHealth raised the low end of its full-year profit forecast.
- The company's shares were trading at their highest level since last December.
Shares of UnitedHealth Group (UNH) gained ground On Friday, the insurance and health services provider reported better-than-expected results and upgraded its guidance.
UnitedHealth reported earnings per share (EPS) for the third quarter of fiscal 2023 of $6.56. Revenue rose 14% to $92.4 billion. Both beat analysts. expectations.
The company highlighted a 22% revenue gain at its Optum health services unit and a 13% rise in sales at the UnitedHealthcare health benefits group for strong numbers.
The medical care ratio of UnitedHealth, which measures the cost of claims relative to premiums collected, was 82.3%, up from 81.6% a year earlier, but down from 83.2% in the second quarter.
The company warned in June about compensation for #39;higher medical insurance as people over 65 opted for more elective surgeries after postponing them during the COVID-19 pandemic.
UnitedHealth raised the The lower end of its full-year EPS outlook at $24.85 from $24.70. He kept the high end at $25.
Shares of UnitedHealth Group rose more than 2% in afternoon trading, to their highest levels since last December.
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Source: investopedia.com
