UnitedHealth Group Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended March 31 (Q1), UnitedHealth Group met expectations on revenue and beat expectations on earnings per share.

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


Gross margin grew, operating margin contracted, and net margin shrank.

Revenue details
UnitedHealth Group booked revenue of $27.28 billion. The 15 analysts polled by S&P Capital IQ expected a top line of $27.09 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $25.43 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.31. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $1.31 for Q1 were 7.4% higher than the prior-year quarter's $1.22 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.9%, 50 basis points better than the prior-year quarter. Operating margin was 8.5%, 20 basis points worse than the prior-year quarter. Net margin was 5.1%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $27.10 billion. On the bottom line, the average EPS estimate is $1.20.

Next year's average estimate for revenue is $109.28 billion. The average EPS estimate is $4.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 1,018 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 999 give UnitedHealth 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 $63.29.

The healthcare investing landscape is littered with also-rans and a few major winners. Is UnitedHealth Group prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.

  • Add UnitedHealth Group to My Watchlist.

At the time thisarticle 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. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement