UnitedHealth Group 2Q Profit Rises
July 15 2020 - 06:50AM
Dow Jones News
By Dave Sebastian
UnitedHealth Group Inc. said profit for its second quarter rose
as it accounted for the deferral of care in its risk-based
businesses, though it expects results to be tempered in quarters
ahead by Covid-19 cost and economic effects.
The parent of the nation's largest health insurer posted net
income of $6.64 billion, or $6.91 a share, compared with $3.29
billion, or $3.42 a share, in the same period last year. Adjusted
earnings were $7.12 a share.
Analysts polled by FactSet were looking for earnings of $5.02 a
share, or $5.28 a share on an adjusted basis.
The company posted revenue of $62.14 billion, up 2.5% from the
comparable quarter last year. Analysts were expecting $63.48
billion.
The medical loss ratio--the percentage of premium revenue spent
on health care--at its insurance unit fell to 70.2% from 83.1% in
the prior year due to the temporary deferral of care due to the
pandemic. Analysts were looking for 78.2%.
The company's UnitedHealthcare unit recorded revenue of $49.1
billion, up from $48.6 billion the year-ago period due to growth in
public-sector and senior programs, offset by commercial enrollment
declines. Sales for its Optum health-services business grew to
$32.7 billion from $28 billion.
Operating costs fell to $52.9 billion from $55.85 billion.
The company continues to expect 2020 earnings of $15.45 a share
to $15.75 a share, or $16.25 a share to $16.55 a share on an
adjusted basis.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 15, 2020 06:35 ET (10:35 GMT)
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