UnitedHealth Group Beats Analyst Estimates on EPS
UnitedHealth Group (NYS: UNH) reported earnings on July 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), UnitedHealth Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew.
Gross margins grew, operating margins shrank, net margins dropped.
UnitedHealth Group reported revenue of $30.41 billion. The 13 analysts polled by S&P Capital IQ expected sales of $30.51 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $27.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.40. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.25 per share. GAAP EPS of $1.40 for Q2 were 10% higher than the prior-year quarter's $1.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.1%, 50 basis points better than the prior-year quarter. Operating margin was 7.9%, 30 basis points worse than the prior-year quarter. Net margin was 4.7%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $30.74 billion. On the bottom line, the average EPS estimate is $1.54.
Next year's average estimate for revenue is $122.86 billion. The average EPS estimate is $5.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,307 members out of 3,460 rating the stock outperform, and 153 members rating it underperform. Among 1,057 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,041 give UnitedHealth Group a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UnitedHealth Group is buy, with an average price target of $70.52.
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The article UnitedHealth Group Beats Analyst Estimates on EPS originally appeared on Fool.com.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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends UnitedHealth Group and recommends the following options:long January 2014 $40 calls on 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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