Health insurance company UnitedHealth (NYSE: UNH) will be reporting results this Tuesday before market hours. Here’s what you need to know.
UnitedHealth missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $109.6 billion, up 9.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ EPS estimates. It added 395,000 customers to reach a total of 54.12 million.
Is UnitedHealth a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting UnitedHealth’s revenue to grow 13.2% year on year to $111.9 billion, improving from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.49 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UnitedHealth has missed Wall Street’s revenue estimates four times over the last two years.
Looking at UnitedHealth’s peers in the health insurance providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 11.6%, and Molina Healthcare reported revenues up 15.7%, topping estimates by 4.4%. Molina Healthcare traded down 16.9% following the results.
Read our full analysis of Centene’s results here and Molina Healthcare’s results here.
Investors in the health insurance providers segment have had steady hands going into earnings, with share prices flat over the last month. UnitedHealth is down 9.7% during the same time and is heading into earnings with an average analyst price target of $372.87 (compared to the current share price of $281.70).
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