UnitedHealth boosts FY22 EPS outlook on H1 performance, growth expectations

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UnitedHealth Group (NYSE: UNH) raised its FY22 EPS outlook following its Q2 results which beat analysts’ estimates.

The company said Q2 total revenues grew + 12.63% Y / Y to $ 80.33B, with double-digit growth at both Optum and UnitedHealthcare.

Adjusted EPS increased + 18.51% Y / Y to $ 5.57. GAAP EPS rose to $ 5.34, compared to $ 4.46 in Q2 2021.

The company added that Q2 medical care ratio was 81.5% compared to 82.8% last year, due to COVID effects and business mix.

Revenue from UnitedHealthcare – which provides health care benefits to individuals and employers, and Medicare and Medicaid beneficiaries – in Q2 grew + 11.89% Y / Y to $ 62.1B.

UnitedHealthcare’s operating earnings grew to $ 3.9B, compared to $$ 3.1B in Q2 2021. The company said the performance reflected strong growth in people served and continued medical and operating cost management.

Total people served by UnitedHealthcare grew by over 600K in 2022, including 280K in Q2.

Q2 revenue from Optum, which provides services to the global health care marketplace, grew + 17.75% Y / Y to $ 45.1B while operating earnings increased + 13.79% to $ 3.3B.

The company said Optum’s revenue per consumer served increased 30% Y / Y, driven by growth in the number of people served under value-based care arrangements and continued expansion of the care services offered, including in-home, digital, clinic-based and outpatient services.

Meanwhile, Optum Insight’s revenue backlog increased by $ 2.3B to $ 23.6B compared to a year ago.

The Group’s Cash Flows from Operations were $ 6.9B.

Outlook:

UnitedHealth (UNH) said that based on H1 performance and growth expectations, it increased its 2022 adjusted EPS outlook to $ 21.40 to $ 21.90, from the prior estimate of $ 21.20 to $ 21.70 per share. Consensus EPS Estimate for 2022 is $ 21.68.

The company raised its 2022 GAAP EPS outlook to $ 20.45 to $ 20.95, from the prior expectations of $ 20.30 to $ 20.80 per share.

UNH + 1.11% to $ 508 premarket July 15

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