UnitedHealth Group
The 10-second takeaway
For the quarter ended March 31 (Q1), UnitedHealth Group met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share shrank.
Margins dropped across the board.
Revenue details
UnitedHealth Group logged revenue of $30.34 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $30.47 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $27.28 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 $1.16. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.14 per share. GAAP EPS of $1.16 for Q1 were 11% lower than the prior-year quarter's $1.31 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 25.6%, 130 basis points worse than the prior-year quarter. Operating margin was 7.1%, 140 basis points worse than the prior-year quarter. Net margin was 3.9%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $30.82 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $123.73 billion. The average EPS estimate is $5.52.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,317 members out of 3,472 rating the stock outperform, and 155 members rating it underperform. Among 1,021 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,005 give UnitedHealth Group a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UnitedHealth Group is buy, with an average price target of $65.92.
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