UnitedHealth Revenue Tops $50B in Q2, Highest Ever in a Quarter
UnitedHealth Group said Tuesday that its revenue from April to June rose 8 percent year-over-year, topping the $50 billion mark for the first time ever in a single quarter.
Revenue from five of its seven businesses rose by more than 10 percent over the year-ago period. The only two businesses to not post double-digit gains were OptumRx, the pharmacy benefits arm of UnitedHealth’s Optum subsidiary—which had a 5 percent revenue increase—and the company’s employer and individual insurance coverage business. Revenue from the sector fell 4 percent.
In a call with investors, David Wichmann, president of Minnetonka-based UnitedHealth, said the drop was due to a more than $1.8 billion hit it took withdrawing from individual exchanges and from fees tied to the health insurance tax moratorium.
In the same call, UnitedHealth CEO Stephen Hemsley elected not to comment on changing health care laws, specifically in regards to the Obamacare replacement plan that, according to Senate Majority Leader Mitch McConnell, currently lacks the votes to even reach the Senate floor for debate.
“We respect the complexity of the social, economic and political matters that are intertwined here,” Hemsley said. “At this stage in the national conversation, speculation about any outcome here would be just that.”
Altogether, UnitedHealth’s revenue amounted to about $50.1 billion in its second quarter. Earnings leapt 30 percent, from $1.75 billion last year to $2.28 billion, in the three-month period.
Analysts polled by Thomson Reuters estimated earnings per share of $2.38—the result came in 8 cents higher.
“Continued strong revenue growth from new business and exceptional customer retention” during the quarter gave the company confidence to raise its earnings per share outlook for the year, Hemsley said. UnitedHealth’s previous estimate of $9.65 to $9.85 in earnings per share was upped slightly to a range of $9.75 to $9.90.
UnitedHealth stock was down about 1 percent to $185.10 in early morning trading Tuesday.