The 10-second takeaway
For the quarter ended Sep. 30 (Q3), UnitedHealth Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins increased across the board.
UnitedHealth Group chalked up revenue of $27.30 billion. The 17 analysts polled by S&P Capital IQ looked for revenue of $27.60 billion on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $25.28 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 $1.50. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.36 per share. GAAP EPS of $1.50 for Q3 were 28% higher than the prior-year quarter's $1.17 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 28.7%, 150 basis points better than the prior-year quarter. Operating margin was 9.6%, 140 basis points better than the prior-year quarter. Net margin was 5.7%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $28.06 billion. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $110.03 billion. The average EPS estimate is $5.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,299 members out of 3,453 rating the stock outperform, and 154 members rating it underperform. Among 980 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 960 give UnitedHealth Group a green thumbs-up, and 20 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 $67.98.
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