UnitedHealth Group Beats Estimates Yet Again

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Unitedhealth Group (NYS: UNH) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), UnitedHealth Group met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share improved significantly.

Gross margins dropped, operating margins contracted, and net margins improved.

Revenue details
UnitedHealth Group logged revenue of $25.9 billion. The 10 analysts polled by S&P Capital IQ anticipated a top line of $25.7 billion. Sales were 7.8% higher than the prior-year quarter's $24.0 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.29. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.03 per share on the same basis. GAAP EPS of $1.17 for Q4 were 23% higher than the prior-year quarter's $0.95 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.1%, 10 basis points worse than the prior-year quarter. Operating margin was 8.0%, 20 basis points worse than the prior-year quarter. Net margin was 4.9%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $27.1 billion. On the bottom line, the average EPS estimate is $1.19.

Next year's average estimate for revenue is $108.4 billion. The average EPS estimate is $4.78.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,315 members out of 3,470 rating the stock outperform, and 155 members rating it underperform. Among 1,083 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,064 give UnitedhHealth Group a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UnitedHealth Group is outperform, with an average price target of $59.42.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of UnitedHealth Group. Motley Fool newsletter services have recommended buying shares of UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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