UnitedHealth ups FY profit outlook following Q2 beat
Insurance giant UnitedHealth raised its 2021 profit outlook on Thursday after its second-quarter results topped analysts' estimates.
UnitedHealth, seen as somewhat of an industry bellwether, upped its full-year profit target for a second time in 2021, with adjusted earnings per share now expected to be between $18.30 and $18.80, up from previous forecasts of $18.10 to $18.60.
For the three months ended 30 June, UnitedHealth posted earnings of $4.27bn, or $4.46 on a per-share basis, while when adjusted for one-time gains and costs, per-share earnings of $4.70 came in significantly higher than the $4.41 expected on the Street.
Quarterly revenues hit $71.32bn, better than the $69.22bn expected, partly due to double-digit percentage growth at its Optum and UnitedHealthcare units.
Earnings from operations came in at $6.0bn and cash flows from operations reached $5.5bn, or 1.3x net income.
Chief executive Andrew Witty said: "UnitedHealth Group is focused on helping people access the care they need, including vaccinations, and expects a continued rise in provision of care in the second half of this year.
"Covid-19 effects include testing and treatment costs; the residual impact of people having deferred care in 2020; and unemployment and other economy-driven factors."
As of 1330 BST, UnitedHealth shares were down 0.48% in pre-market at $412.75 each.