UnitedHealth Group (UNH) -) posted stronger-than-expected third quarter earnings Friday, while lifting its full-year profit forecast, as its Optum benefits division continued to power its top and bottom lines.
UnitedHealth said adjusted profits for the three months ended in September came in at $6.56 a share, up 13.3% from the same period last year and 24cents ahead of the Wall Street consensus forecast of $6.32 per share.
Group revenues, UnitedHealth said, rose 14.2% to $92.4 billion, again topping analysts' estimates of an $91.37 billion tally, while Optum revenues rose 21.6% to $56.7 billion.
UnitedHealth's medical cost ratio, meanwhile, was pegged 70 basis points higher at 82.3%, suggesting a modestly larger portion of its collected premiums were paid out on insurance claims. Overall premiums were up 12.2% to $72.4339 billion while operating costs rose 12.6% to $83.84 billion.
Looking into the final months of the year, UnitedHealth said it sees 2023 earnings in the region of $24.85 to $25.00, up from its prior forecast of $24.70 to $25.00 per share.
“As a result of our colleagues’ steadfast focus on helping people access and receive the care they need, we are well-positioned to help even more people and continue to generate strong, diversified growth in the coming years,” said CEO Andrew Witty.
UnitedHealth shares, a Dow component, were marked 3% higher in early Friday trading immediately following the earnings release to change hands at $542.16 each.
Earlier this summer, UnitedHealth received provisional approval from competition authorities in Britain for its proposed $1.6 billion takeover of healthcare technology group EMIS Group plc, which is listed in London.
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