UnitedHealth Group (NYSE: UNH) has reported its first quarter 2024 results, showcasing a significant growth trajectory despite facing challenges such as the cyberattack on Change Healthcare. The company’s revenues reached $99.8 billion, marking a substantial increase of nearly $8 billion year-over-year.
This growth was fueled by a robust expansion in the number of people served at both Optum and UnitedHealthcare, alongside consistent medical care activity. Despite the cyberattack’s impacts totaling $0.74 per share, UnitedHealth Group demonstrated resilience, providing over $6 billion in advance funding and interest-free loans to support care providers in need.
UnitedHealth Group Beats Expectations in Q1 with $6.91 EPS, $99.8 Billion in Revenue
The first quarter’s performance was also characterized by a net loss of $1.53 per share, primarily due to the currency effects of the previously reported Brazil sale and the cyberattack.
However, adjusted earnings stood at $6.91 per share, incorporating the business disruption impacts but excluding the direct response costs and Brazil sales. The company’s efforts to swiftly and effectively address the cyberattack’s ramifications, coupled with its commitment to supporting impacted healthcare providers, underscore the robustness of its operational and financial management strategies.
Compared to the expectations set for the quarter, UnitedHealth Group’s performance has been noteworthy. Analysts had projected earnings per share (EPS) of $6.62 and revenue of $99.26 billion. The results surpassed these expectations, with the company achieving an EPS of $6.91 and revenue of $99.8 billion.
UnitedHealth Group Expects Net Earnings to be $17.6 to $18.2 per Share for Full Year 2024
Looking ahead, UnitedHealth Group has updated its full-year 2024 net earnings outlook to $17.60 to $18.20 per share, reflecting the estimated direct response costs of the cyberattack and the effects of the Brazil sale.
However, the company has maintained its adjusted net earnings outlook of $27.50 to $28.00 per share. This outlook includes the estimated business disruption impacts for the affected Change Healthcare services, demonstrating the company’s confidence in its ability to navigate through the current challenges and continue delivering value to its stakeholders.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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