The 10-second takeaway
For the quarter ended Dec. 31 (Q4), UnitedHealth Group beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased slightly.
Margins dropped across the board.
UnitedHealth Group booked revenue of $28.77 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $28.25 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $25.92 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 $1.20. The 22 earnings estimates compiled by S&P Capital IQ averaged $1.19 per share. GAAP EPS of $1.20 for Q4 were 2.6% 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 27.7%, 40 basis points worse than the prior-year quarter. Operating margin was 7.3%, 70 basis points worse than the prior-year quarter. Net margin was 4.3%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $29.83 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $122.83 billion. The average EPS estimate is $5.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,322 members out of 3,475 rating the stock outperform, and 153 members rating it underperform. Among 1,023 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,001 give UnitedHealth Group a green thumbs-up, and 22 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 $66.50.
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