By Tess Stynes
UnitedHealth Group Inc. (UNH) projected 2014 earnings and
revenue below analysts expectations ahead of its annual investor
conference in New York.
The managed-care provider forecast per-share earnings of $5.40
to $5.60 and revenue of $128 billion to $129 billion. Analysts
polled by Thomson Reuters most recently expected $5.67 and $132.28
billion, respectively.
UnitedHealth in October had said the planned reductions in
government funding for Medicare Advantage and other provisions of
the health law would affect its 2014 earnings.
During a conference call that month, Chief Executive Stephen
Hemsley said its 2014 earnings would "likely straddle" its
current-year outlook of $5.40 to $5.50 a share as a result of the
changes. That indicated 2014 profits could fall well below
analysts' expectations at the time.
Shares of UnitedHealth, which affirmed its 2013 earnings view,
closed Friday at $74.48 and were inactive premarket. The stock is
up 37% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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