On Friday, UnitedHealth announced strong growth, moving higher in trading after the company showed impressive first-quarter results.
Its stock price dropped by -2.74% to $511.79 per share on April 14. However, it is anticipated to rise by 0.14% to $512.50 in the upcoming session.
The earnings per share of UnitedHealth improved by $6.26, surpassing analysts’ $6.17 forecasts. Also, the latest reading is better than the previous $5.34 data. Within the past four quarters, it beat the EPS estimates four times.
Moreover, the healthcare titan’s revenue jumped by $91.90 billion, exceeding the $89.71 billion consensus. Therefore, it is higher than the $82.80 billion figures. It managed to top speculations three times in the recent four quarters.
Furthermore, maintaining stability in the stock price movement of UnitedHealth will depend on the management’s commentary at the earnings call.
According to Andrew Witty, the firm’s chief executive officer, their growth in the quarter is an effect of their colleagues’ commitment. As a result, they provide customers with more health services and better access to high-quality yet affordable care.
In the full year 2022, its medical care ratio hit 82.00%. For Q4, it reached 82.80% consistently in the entity’s recent Investor Conference outlook. Additionally, favorable medical reserve improvement stood at $620.00 million in the quarter.
Home-based Care Scope Widened by UnitedHealth
UnitedHealth focuses on acquisitions and investments in value-based care for better home-based care.
Based on President and COO Dirk McMahon, the LHC Group acquisition was a vital step. It is an effort for the company to go further into home-based care.
In a recent earnings call, he added that the latest unity with the group widens in-home capabilities. LHC offers excellent home health and services, with more than 12 million patient encounters yearly.
According to Executive Vice President and CFO of UnitedHealth John Rex, more deals will likely occur as they go further into the year.
He added that they look forward to increasing investment activities as they anticipate an acceleration in the second quarter.
