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UnitedHealth's (UNH) UnitedHealthcare Unit to Aid Q4 Earnings?
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UnitedHealth Group Incorporated (UNH - Free Report) is set to release its fourth-quarter 2022 results on Jan 13, before the opening bell. Since the company has significant exposure to the healthcare business, sustained membership growth is likely to have aided the quarterly performance. Community-based and senior offerings of the unit are likely to have triggered growth.
UnitedHealthcare Business
Through this segment, UNH offers healthcare benefits around the world. While it has significant exposure to the Medicare and Medicaid markets, it also serves individuals and employers. The defensive properties of the sector enable UnitedHealth to maintain its momentum despite economic headwinds. In the last reported quarter, the segment’s revenues jumped 10.8% year over year to $62 billion, while operating income improved 43.3% to $3.8 billion.
UnitedHealthcare's Q3 Performance
Considering the unit’s products, premiums increased 11.3% year over year to $59.4 billion in the third quarter while service revenues rose 1.2% to $2.4 billion. Total revenues from Employer & Individual Domestic, Medicare & Retirement, and Community & State businesses came in at $59.9 billion, increasing 11.3%. However, from global operations, UNH reported revenues of $2,120 million, down 0.9% year over year.
Forecast for Q4 Segment Performance
The Zacks Consensus Estimate for UnitedHealthcare’s revenues indicates a 10.3% year-over-year increase from the year-ago level of $56.4 billion while our estimate suggests a 10.9% rise. The consensus mark for fourth-quarter operating earnings signals a 20.2% year-over-year rise from $2.1 billion a year ago.
The consensus mark for fourth-quarter 2022 medical care ratio is pegged at 83%, down from the year-ago level of around 84%, while our estimate of 82.8% suggests further improvement.
The Zacks Consensus Estimate for fourth-quarter 2022 global revenues indicates 9.8% year-over-year growth from $2,053 million. The consensus mark for UnitedHealthcare’s Community & State revenues suggests an 8.8% rise from the year-ago period’s $14,133 million.
The consensus mark for Medicare & Retirement business’ revenues signals 13% year-over-year growth from $24.8 billion a year ago while our estimate indicates a 12.3% improvement.
The Zacks Consensus Estimate for UnitedHealthcare’s total number of people served in commercial domestic business indicates a 0.2% increase from the year-ago level of 26,580 thousand while our estimate predicts a 0.3% year-over-year increase.
Final Thoughts
The UnitedHealthcare unit is expected to have positioned the company for remarkable year-over-year growth. The Zacks Consensus Estimate for UNH’s fourth-quarter earnings signals a 15.4% increase from the prior-year figure of $4.48 per share while our estimate suggests a 14.4% year-over-year rise. The consensus estimate for revenues of $82.8 billion indicates a 12.3% increase from the year-ago reported figure while our estimate predicts a 12.6% rise.
However, higher total costs might have affected the margins in the fourth quarter, making an earnings beat uncertain. Our estimate for medical costs indicates an 11.6% year-over-year increase while we expect operating expenses to have jumped 11.1%. Further, we expect the cost of products sold to have jumped 14.8% year over year in the to-be-reported quarter.
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, which is not the case here.
UnitedHealth has an Earnings ESP of -0.79% and currently carries a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
UnitedHealth Group Incorporated Price and EPS Surprise
Here are some companies from the broader 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:
Adicet Bio, Inc. (ACET - Free Report) has an Earnings ESP of +4.27% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Adicet’s earnings per share for the to-be-reported quarter has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction. ACET beat earnings estimates twice in the past four quarters and missed on two occasions, the average surprise being 54.2%.
Affimed N.V. (AFMD - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.
The Zacks Consensus Estimate for Affimed’s bottom line for the to-be-reported quarter indicates a 4.6% improvement from the year-ago period. AFMD beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 11.5%.
Masimo Corporation (MASI - Free Report) has an Earnings ESP of +0.42% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Masimo’s bottom line for the to-be-reported quarter is pegged at $1.18 per share, which improved 4.4% in the past 30 days. MASI beat earnings estimates in all the past four quarters, the average being 8.3%.
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UnitedHealth's (UNH) UnitedHealthcare Unit to Aid Q4 Earnings?
UnitedHealth Group Incorporated (UNH - Free Report) is set to release its fourth-quarter 2022 results on Jan 13, before the opening bell. Since the company has significant exposure to the healthcare business, sustained membership growth is likely to have aided the quarterly performance. Community-based and senior offerings of the unit are likely to have triggered growth.
UnitedHealthcare Business
Through this segment, UNH offers healthcare benefits around the world. While it has significant exposure to the Medicare and Medicaid markets, it also serves individuals and employers. The defensive properties of the sector enable UnitedHealth to maintain its momentum despite economic headwinds. In the last reported quarter, the segment’s revenues jumped 10.8% year over year to $62 billion, while operating income improved 43.3% to $3.8 billion.
UnitedHealthcare's Q3 Performance
Considering the unit’s products, premiums increased 11.3% year over year to $59.4 billion in the third quarter while service revenues rose 1.2% to $2.4 billion. Total revenues from Employer & Individual Domestic, Medicare & Retirement, and Community & State businesses came in at $59.9 billion, increasing 11.3%. However, from global operations, UNH reported revenues of $2,120 million, down 0.9% year over year.
Forecast for Q4 Segment Performance
The Zacks Consensus Estimate for UnitedHealthcare’s revenues indicates a 10.3% year-over-year increase from the year-ago level of $56.4 billion while our estimate suggests a 10.9% rise. The consensus mark for fourth-quarter operating earnings signals a 20.2% year-over-year rise from $2.1 billion a year ago.
The consensus mark for fourth-quarter 2022 medical care ratio is pegged at 83%, down from the year-ago level of around 84%, while our estimate of 82.8% suggests further improvement.
The Zacks Consensus Estimate for fourth-quarter 2022 global revenues indicates 9.8% year-over-year growth from $2,053 million. The consensus mark for UnitedHealthcare’s Community & State revenues suggests an 8.8% rise from the year-ago period’s $14,133 million.
The consensus mark for Medicare & Retirement business’ revenues signals 13% year-over-year growth from $24.8 billion a year ago while our estimate indicates a 12.3% improvement.
The Zacks Consensus Estimate for UnitedHealthcare’s total number of people served in commercial domestic business indicates a 0.2% increase from the year-ago level of 26,580 thousand while our estimate predicts a 0.3% year-over-year increase.
Final Thoughts
The UnitedHealthcare unit is expected to have positioned the company for remarkable year-over-year growth. The Zacks Consensus Estimate for UNH’s fourth-quarter earnings signals a 15.4% increase from the prior-year figure of $4.48 per share while our estimate suggests a 14.4% year-over-year rise. The consensus estimate for revenues of $82.8 billion indicates a 12.3% increase from the year-ago reported figure while our estimate predicts a 12.6% rise.
However, higher total costs might have affected the margins in the fourth quarter, making an earnings beat uncertain. Our estimate for medical costs indicates an 11.6% year-over-year increase while we expect operating expenses to have jumped 11.1%. Further, we expect the cost of products sold to have jumped 14.8% year over year in the to-be-reported quarter.
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, which is not the case here.
UnitedHealth has an Earnings ESP of -0.79% and currently carries a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
UnitedHealth Group Incorporated Price and EPS Surprise
UnitedHealth Group Incorporated price-eps-surprise | UnitedHealth Group Incorporated Quote
Stocks to Consider
Here are some companies from the broader 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:
Adicet Bio, Inc. (ACET - Free Report) has an Earnings ESP of +4.27% and is a Zacks #2 Ranked player.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Adicet’s earnings per share for the to-be-reported quarter has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction. ACET beat earnings estimates twice in the past four quarters and missed on two occasions, the average surprise being 54.2%.
Affimed N.V. (AFMD - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.
The Zacks Consensus Estimate for Affimed’s bottom line for the to-be-reported quarter indicates a 4.6% improvement from the year-ago period. AFMD beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 11.5%.
Masimo Corporation (MASI - Free Report) has an Earnings ESP of +0.42% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Masimo’s bottom line for the to-be-reported quarter is pegged at $1.18 per share, which improved 4.4% in the past 30 days. MASI beat earnings estimates in all the past four quarters, the average being 8.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.