What to expect with UnitedHealth's earnings Thursday
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Patrick T. Fallon/AFP via Getty Images
UnitedHealth Group is expected to post a sizable profit on Thursday morning when it reports its fourth-quarter and year-end earnings report, despite being hit by a historically costly cyberattack and weathering ever-rising medical costs.
Why it matters: This is the first earnings report and the first time executives of UnitedHealth Group will speak publicly since the killing of UnitedHealthcare CEO Brian Thompson.
The big picture: Thompson's death surfaced widespread public vitriol at insurers, with stocks across the industry falling in the wake of the news and the subsequent reaction.
- Their latest earnings reports are expected to be closely watched, with a group of investors calling on UnitedHealth to account for questions about denied or delayed care, Healthcare Dive reported.
- Analysts estimate UnitedHealth will likely report fourth-quarter earnings are an average of $6.72 per share, which would be a 9.1% year-over-year increase over the fourth quarter a year earlier. Others expect 8% year-over-year earnings growth.
The big picture: As one of the first health companies to generally report, UnitedHealth Group often is a bellwether of industry trends.
- Insurers across the board have faced challenges when it comes to their Medicare Advantage business, as well as increasing medical costs as utilization grows post-pandemic.
- Despite falling Medicare Advantage reimbursements, insurers have consistently posted profits driven in part by their pivot into care delivery businesses.
- Late last week, UnitedHealth's shares — along with CVS Health and Humana — all saw a bump on news of a proposed bump to MA payment rates.
By the numbers: UnitedHealth Group's third-quarter earnings, reported in October, were $8.7 billion, up from $8.5 billion the same quarter a year earlier.
- That was despite the massive cyberattack on United subsidiary Change Healthcare earlier last year, which impacted an estimated 1 in 3 people and was previously estimated to cost the company $2.3 billion.
