UnitedHealth Group (UNH) posted better-than-expected third quarter earnings Friday, powered once again by double-digit gains from its Optum division, while boosting its full-year profit forecast.
UnitedHealth said adjusted profits for the three months ended in September came in at $5.79 a share, up 28% from the same period last year and 37 cents ahead of the Wall Street consensus forecast.
Group revenues, UnitedHealth said, rose 11.8% to $80.9 billion, again topping analysts' estimates of an $80.5 billion tally, while Optum revenue rose 17.1% to $46.6 billion.
Looking into the final months of the year UnitedHealth forecast adjusted earnings between $21.85 to $22.05 per share, up from a prior forecast of $21.40 to $21.90 per share.
“The strength of our performance reflects the diligence and determination of our colleagues to improve people’s experience across the health care system and make high-quality care simpler, more accessible and more affordable,” said CEO Andrew Witty.
UnitedHealth shares, a Dow component, were marked 1.9% higher in late-morning trading following the earnings release to change hands at $520.00 each, a move that would trim the stock's six-month decline to around 2.7%.
Last month, Judge Carl Nichols of the U.S. District Court for the District of Columbia denied a request from the Department of Justice to block UnitedHealth's proposed merger with healthcare technology group Change Healthcare (CHNG).
The DoJ had raised antitrust concerns over the $8 billion deal, first unveiled in January, and argued that it would give UnitedHealth access to healthcare plans offered by rival such as Humana (HUM) and Anthem, while allowing the combined group to service around 95% of the top health insurance companies in the country.
Judge Nichols, however, allowed the deal go ahead, provided UnitedHealth completes the agreed $2.2 billion sale of Change's claims edit subsidiary, ClaimsXten, to a private equity group.
