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UnitedHealth unveils Q2 results ahead of estimates, stock up

Published 07/16/2024, 06:06 AM
Updated 07/16/2024, 06:09 AM
© Reuters.  UnitedHealth unveils Q2 results ahead of estimates, stock up
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UnitedHealth Group (NYSE:UNH) reported on Tuesday earnings and revenue for the fiscal Q2 2024 that beat consensus estimates.

Q2 earnings per share (EPS) stood at $6.80, above the analyst expectations of $6.67. Revenue for the quarter was $98.9 billion, slightly above the consensus estimate of $98.72 billion.

UNH shares rose 1% in premarket trading.

For the full fiscal 2024, UNH expects its EPS to be between $27.50 and $28.00, compared to the consensus projection of $27.59.

“The diversified, durable growth across UnitedHealth Group stems from our colleagues’ commitment to ensuring high-quality, affordable care is available to the people we serve, and positions us well for the near and long-term,” said Andrew Witty, CEO of UnitedHealth Group.

The company said that the total impact of cyberattacks in the second quarter was $0.92 per share. This included $0.64 per share for direct response efforts, such as the restoration of the Change Healthcare clearinghouse platform and increased medical care expenditures.

“The change is due to the company’s care provider financial support initiatives and consumer notification costs. Business disruption impacts are estimated at $0.60 to $0.70 per share,” UnitedHealth said in the press release.

For the full year 2024, the company estimates the total impact to be between $1.90 and $2.05 per share. Within this, direct response costs are estimated at $1.30 to $1.35 per share, which is an increase of $0.40 to $0.45 from the initial estimate.

Following the sale of its Brazilian business, the company now plans to divest its remaining South American operations. The total impact from South America in the quarter was $1.28 per share, primarily non-cash, attributed to cumulative foreign currency losses.

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