UnitedHealth Group is trading higher premarket Oct. 14 after Q3 results surpassed estimates and the company raised its FY22 outlook.
Q3 total revenues grew +11.83% Y/Y to $80.89B, with double-digit growth at both Optum and UnitedHealthcare,
Adjusted EPS increased +28.1% Y/Y to $5.79. GAAP EPS rose +29.67% to $.55.
The company said medical care ratio was 81.6% in Q3, compared to 83.0% in Q3 2021, due to COVID effects and business mix.
Revenue from UnitedHealthcare — which provides health care benefits to individuals and employers, and Medicare and Medicaid beneficiaries — in Q3 grew ~11% Y/Y to $62B.
The company said UnitedHealthcare's operating earnings increased to $3.8B, compared to $2.7B in Q3 2021, reflecting growth in people served, COVID effects, and continued medical and operating cost management.
UNH noted that Total people served domestically by UnitedHealthcare grew by ~850K in 2022, including 185K in Q3.
Revenue from Optum, which provides services to the global health care marketplace, in Q3 grew +17% Y/Y to $46.6B, while earnings from operations increased +19.35% to $3.7B.
UNH added that Optum Health revenue per consumer served grew 31% Y/Y, led by growth in value-based care arrangements and expansion of care delivery platforms, including in-home, clinic-based, ambulatory surgery, behavioral and digital.
Meanwhile, Optum Insight revenue grew 18% Q3 driven by the growth of payer and provider services. Revenue backlog grew by $1.8B Y/Y to $24.1B.
The company noted that Change Healthcare, which was recently merged, will boost efforts to better connect and simplify the core clinical, administrative and payment processes health care providers and payers depend on to serve patients.
UNH said cash flows from operations were $18.5B; while adjusted cash flows from operations were $8.8B.
Outlook:
UnitedHealth (UNH) said it increased its 2022 adjusted EPS outlook to $21.85 to $22.05 (prior forecast at the time of Q2 results was $21.40 to $21.90). Consensus EPS Estimate for 2022 is $21.89.
The company also raised its full year 2022 net earnings outlook to $20.85 to $21.05 per share ( prior range $20.45 to $20.95)
UNH +0.32% to $511.55 premarket Oct. 14
