UnitedHealth beats EPS consensus, reiterates guidance

UnitedHealth (UNH) Q2 results:

Revenues: $62,138M (+2.5%); Premiums: $49,394M (+4.7%); Products: $8,247M (-1.3%); Services: $4,156M (-7.6%); Investment and other income: $341M (-41.4%).

UnitedHealthcare: $49,107M (+1.1%); Optum: $32,695M (+16.6%).

Net Income: $6,637M (+101.5%); EPS: $6.91 (+102.0%); non-GAAP Net Income: $6,839M (+96.9%); non-GAAP EPS: $7.12 (+97.8%).

CF Ops: $12,946M (+42.1%).

Q2 medical care ratio declined to 70.2% from 83.1% last year, due to temporary deferral of care due to the pandemic.

Q2 operating cost ratio increased to 16.1% from 13.9% in Q2 2019, due to the health insurance tax, COVID-19 response efforts and business mix.

2020 guidance: GAAP EPS: $15.45 – 15.75 (unch); Non-GAAP EPS: $16.25 – 16.55 (unch); GAAP net income: $14,750M – 15,050M (unch); Non-GAAP net income: $15,525M – 15,825M (unch).

Previously: UnitedHealth EPS beats by $1.88, misses on revenue (July 15)

https://seekingalpha.com/news/3591292-unitedhealth-beats-eps-consensus-reiterates-guidance