The 10-second takeaway
For the quarter ended March 31 (Q1), UnitedHealth Group met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margin grew, operating margin contracted, and net margin shrank.
UnitedHealth Group booked revenue of $27.28 billion. The 15 analysts polled by S&P Capital IQ expected a top line of $27.09 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $25.43 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.31. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $1.31 for Q1 were 7.4% higher than the prior-year quarter's $1.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 50 basis points better than the prior-year quarter. Operating margin was 8.5%, 20 basis points worse than the prior-year quarter. Net margin was 5.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $27.10 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $109.28 billion. The average EPS estimate is $4.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 1,018 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 999 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 $63.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.