UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) shares climbed about 5% in post-market trading after the healthcare company reported second quarter results that beat Wall Street expectations and raised its full-year adjusted earnings outlook.
For the quarter ended June 30, UnitedHealth reported adjusted earnings of $6.38 per share, ahead of analysts’ expectations of about $4.91 per share
Revenue rose to $112 billion from the prior year, exceeding the consensus estimate of roughly $110.8 billion. Net earnings were $6.04 per share, while earnings from operations totaled $8 billion. “Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people,” UnitedHealth CEO Stephen Hemsley said in a statement. UnitedHealth’s medical cost ratio, a closely watched measure of healthcare spending, was 86.7% in the quarter, below analysts’ expectations of 88.4%.
The company attributed the result to product design changes, improved medical management, better-aligned pricing and favorable prior-period development. The operating cost ratio increased to 12.7% from 12.3% a year earlier, reflecting investments in technology, operations, artificial intelligence, care delivery enhancements and consumer experience. UnitedHealthcare served 48.5 million consumers during the quarter, generating $86 billion in revenue and $3.9 billion in earnings.