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Will These Numbers from UnitedHealth Group Be Good Enough for You?

By Seth Jayson - Updated Apr 7, 2017 at 12:26PM

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Checking expectations

UnitedHealth Group (NYSE: UNH) is expected to report Q3 earnings on Oct. 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict UnitedHealth Group's revenues will grow 9.1% and EPS will increase 13.7%.

The average estimate for revenue is $27.59 billion. On the bottom line, the average EPS estimate is $1.33.

Revenue details
Last quarter, UnitedHealth Group recorded revenue of $27.27 billion. 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
Last quarter, EPS came in at $1.27. 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.

Recent performance
For the preceding 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

The full year's average estimate for revenue is $110.00 billion. The average EPS estimate is $5.10.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,297 members out of 3,451 rating the stock outperform, and 154 members rating it underperform. Among 980 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 959 give UnitedHealth Group a green thumbs-up, and 21 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.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

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Stocks Mentioned

UnitedHealth Group Incorporated Stock Quote
UnitedHealth Group Incorporated
UNH
$543.70 (2.03%) $10.84

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