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UnitedHealth (UNH) to Post Q1 Earnings: What to Expect
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UnitedHealth Group Incorporated (UNH - Free Report) is set to report first-quarter 2022 results on Apr 14, before the opening bell.
The healthcare plan provider reported an adjusted earnings of $4.48 per share for the fourth quarter, beating the Zacks Consensus Estimate of $4.30 on the back of strong performances in UnitedHealthcare and Optum businesses. An increased number of people served in UnitedHealthcare and solid contributions from the Optum sub-segments aided the results.
The Zacks Consensus Estimate for first-quarter earnings per share of $5.40 suggests a 1.7% increase from the prior-year figure of $5.31. Two upward estimate revisions have been witnessed by the company in the past week compared to none in the opposite direction. The consensus estimate for first-quarter revenues of $78.6 billion indicates a 12% increase from the year-ago reported figure.
UnitedHealth beat the consensus estimate for earnings in each of the prior four quarters, with the average being 8.4%. This is depicted in the graph below:
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth’s first-quarter results are expected to be boosted by higher premiums. In fact, the Zacks Consensus Estimate for premiums indicates a 13.2% year-over-year increase. Solid insurance sales of dental and vision plans might have aided premium growth. Also, the consensus mark for products is pegged at $8,994 million, signaling a jump from $8,340 million a year ago.
Revenues from UnitedHealthcare, UNH’s largest segment that sells insurance, are likely to have risen on higher membership in community and senior programs. As such, the Zacks Consensus Estimate for services is pegged at $6,482 million, indicating an increase from the year-ago figure of $5,918 million.
The Optum business segment is expected to have witnessed a higher contribution from sub-segments OptumHealth and Optum Insight in the first quarter. A rise in the number of people being catered to in value-based care arrangements and the growing strength of affiliated physicians might aid the results. Optum Insight is likely to have witnessed higher profits owing to growth in services and technology offerings and improved productivity. This might have led to a year-over-year rise in the bottom line.
Nevertheless, UnitedHealth is likely to have faced an elevated expense level due to a rise in medical costs and operating costs. This might have affected its profit levels in the first quarter, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for UnitedHealth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.58%. This is because the Most Accurate Estimate currently stands at $5.37 per share, lower than the Zacks Consensus Estimate of $5.40.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While an earnings beat looks uncertain for UnitedHealth, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Cara Therapeutics, Inc. (CARA - Free Report) has an Earnings ESP of +8.27% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cara Therapeutics’ bottom line for the to-be-reported quarter has improved 5.1% in the past 30 days. CARA witnessed one upward estimate revision in the past 30 days compared with none in the opposite direction.
United Therapeutics Corporation (UTHR - Free Report) has an Earnings ESP of +10.75% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for United Therapeutics’ earnings per share for the to-be-reported quarter is pegged at $2.95, implying a massive improvement from the year-ago figure of 61 cents. UTHR witnessed one upward estimate revision in the past 30 days compared with none in the opposite direction.
Clover Health Investments, Corp. (CLOV - Free Report) has an Earnings ESP of +38.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Clover Health’s bottom line for the to-be-reported quarter has improved 17.2% in the past 30 days. The consensus mark for CLOV’s top line indicates a 307% year-over-year increase.
Image: Bigstock
UnitedHealth (UNH) to Post Q1 Earnings: What to Expect
UnitedHealth Group Incorporated (UNH - Free Report) is set to report first-quarter 2022 results on Apr 14, before the opening bell.
The healthcare plan provider reported an adjusted earnings of $4.48 per share for the fourth quarter, beating the Zacks Consensus Estimate of $4.30 on the back of strong performances in UnitedHealthcare and Optum businesses. An increased number of people served in UnitedHealthcare and solid contributions from the Optum sub-segments aided the results.
Let’s see how things have shaped up prior to the first-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings per share of $5.40 suggests a 1.7% increase from the prior-year figure of $5.31. Two upward estimate revisions have been witnessed by the company in the past week compared to none in the opposite direction. The consensus estimate for first-quarter revenues of $78.6 billion indicates a 12% increase from the year-ago reported figure.
UnitedHealth beat the consensus estimate for earnings in each of the prior four quarters, with the average being 8.4%. This is depicted in the graph below:
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth Group Incorporated price-eps-surprise | UnitedHealth Group Incorporated Quote
Factors to Note
UnitedHealth’s first-quarter results are expected to be boosted by higher premiums. In fact, the Zacks Consensus Estimate for premiums indicates a 13.2% year-over-year increase. Solid insurance sales of dental and vision plans might have aided premium growth. Also, the consensus mark for products is pegged at $8,994 million, signaling a jump from $8,340 million a year ago.
Revenues from UnitedHealthcare, UNH’s largest segment that sells insurance, are likely to have risen on higher membership in community and senior programs. As such, the Zacks Consensus Estimate for services is pegged at $6,482 million, indicating an increase from the year-ago figure of $5,918 million.
The Optum business segment is expected to have witnessed a higher contribution from sub-segments OptumHealth and Optum Insight in the first quarter. A rise in the number of people being catered to in value-based care arrangements and the growing strength of affiliated physicians might aid the results. Optum Insight is likely to have witnessed higher profits owing to growth in services and technology offerings and improved productivity. This might have led to a year-over-year rise in the bottom line.
Nevertheless, UnitedHealth is likely to have faced an elevated expense level due to a rise in medical costs and operating costs. This might have affected its profit levels in the first quarter, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for UnitedHealth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.58%. This is because the Most Accurate Estimate currently stands at $5.37 per share, lower than the Zacks Consensus Estimate of $5.40.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UnitedHealth currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for UnitedHealth, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Cara Therapeutics, Inc. (CARA - Free Report) has an Earnings ESP of +8.27% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cara Therapeutics’ bottom line for the to-be-reported quarter has improved 5.1% in the past 30 days. CARA witnessed one upward estimate revision in the past 30 days compared with none in the opposite direction.
United Therapeutics Corporation (UTHR - Free Report) has an Earnings ESP of +10.75% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for United Therapeutics’ earnings per share for the to-be-reported quarter is pegged at $2.95, implying a massive improvement from the year-ago figure of 61 cents. UTHR witnessed one upward estimate revision in the past 30 days compared with none in the opposite direction.
Clover Health Investments, Corp. (CLOV - Free Report) has an Earnings ESP of +38.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Clover Health’s bottom line for the to-be-reported quarter has improved 17.2% in the past 30 days. The consensus mark for CLOV’s top line indicates a 307% year-over-year increase.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.