UnitedHealth Group (NYSE: UNH ) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), UnitedHealth Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margins expanded, operating margins dropped, net margins dropped.
Revenue details
UnitedHealth Group recorded revenue of $27.27 billion. The 17 analysts polled by S&P Capital IQ expected net sales of $27.33 billion on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $25.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.27. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.19 per share. GAAP EPS of $1.27 for Q2 were 9.5% higher than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 26.6%, 20 basis points better than the prior-year quarter. Operating margin was 8.2%, 10 basis points worse than the prior-year quarter. Net margin was 4.9%, 10 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $27.49 billion. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $109.95 billion. The average EPS estimate is $5.01.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,295 members out of 3,447 rating the stock outperform, and 153 members rating it underperform. Among 975 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 956 give Unitedhealth Group a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UnitedHealth Group is outperform, with an average price target of $68.38.
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