Reportedly, the UnitedHealth Group Incorporated (UNH) announced its Q3 earnings this week beating estimates, the company raised its annual profit forecast pushed by growth in its Optum unit that deals in drug benefits. UnitedHealth alarmed demand for deferred services in May and June leading to higher medical costs for the second half of the year, as spend in the first half of the year was low due to the pandemic.
Key Highlights from the release:
- The company recorded an MLR (medical loss ratio) of 81.9%, lower than last year’s 82.4%.
- Revenue from its Optum unit increased from 21.4% to $34.92 billion in the quarter.
- UnitedHealth’s largest health insurance business reported $50.4 billion in sales for the quarter.
- Adjusted earnings of $3.51 per share were reported for the quarter, beating estimates of $3.09 per share.
The company raised its annual 2020 adjusted profit forecast to between $16.50 per share and $16.75 per share, higher from its previous estimates of $16.25 per share to $16.55 per share.
Dow 30 component UnitedHealth Group Incorporated (UNH) operates as a diversified health and well-being company in the United States. The company’s UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, individuals, and military service members; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services. To learn more about (UNH) please visit the Vista Partners Company Dedicated UNH Coverage Page.
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