UnitedHealth Group's stock soared 9.11% at the open on Tuesday, as investors cheered the healthcare giant's first-quarter results that handily beat Wall Street expectations.
The company reported adjusted earnings per share of $7.23, significantly above the consensus estimate of $6.57, while revenue of $111.7 billion also surpassed forecasts. UnitedHealth also raised its full-year adjusted EPS guidance to greater than $18.25, up from prior outlook and above analyst expectations, signaling confidence in its ongoing turnaround under CEO Stephen Hemsley.
Additionally, the company announced a plan to repurchase at least $2 billion of its common stock by the end of the second quarter, and reported a better-than-expected medical cost ratio of 83.9%, indicating improved cost management amid elevated healthcare utilization.
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