UnitedHealth Group (UNH) Q1 2024 earnings

107380675 1709241156844 gettyimages 2004536961 IGOS4469

107380675 1709241156844 gettyimages 2004536961 IGOS4469

UnitedHealth Group posted better-than-expected revenue in its recent first-quarter results, despite ongoing challenges stemming from a cyberattack on its subsidiary Change Healthcare. The company’s performance included earnings of $6.91 per share, surpassing analysts’ expectations of $6.61, and revenue of $99.8 billion, higher than the projected $99.3 billion. UnitedHealth attributed its revenue growth of nearly 9% to various factors, including the sale of its Brazil operations, which resulted in a net loss of $1.53 per share.

The cyberattack also had a significant impact, with total costs amounting to 74 cents per share in the first quarter. Direct response costs related to restoring Change Healthcare platforms were 49 cents per share, while business disruption costs, like lost revenue, were 25 cents per share. The company anticipates the full-year impact of the cyberattack to be between $1.15 and $1.35 per share.

Despite these challenges, UnitedHealth’s shares rose over 5% in premarket trading. The company, which comprises Optum and UnitedHealthcare, reported that Optum’s revenue grew to $61.1 billion in the first quarter, driven by its patient care and pharmacy services. UnitedHealth reassured investors that it continues to make progress in bringing Change Healthcare’s services back online.

UnitedHealthcare, the company’s insurance and benefit services unit, reported revenue of $75.4 billion for the quarter, fueled by a rise in the number of individuals served. UnitedHealth adjusted its full-year net earnings outlook to account for the cyberattack and Brazil sale, forecasting $17.60 to $18.20 per share, while maintaining an adjusted net earnings outlook of $27.50 to $28 per share.CEO Andrew Witty expressed confidence in the company’s ability to deliver improved experiences and drive balanced growth amidst the ongoing challenges.

UnitedHealth Group recently reported better-than-expected revenue in its first-quarter results, despite facing challenges from a cyberattack on its subsidiary Change Healthcare. The company reported earnings of $6.91 per share, surpassing analyst expectations of $6.61 per share. Revenue reached $99.8 billion, up nearly 9% from the previous year. UnitedHealth incurred a charge of $7 billion from selling its Brazil operations, contributing to a net loss of $1.53 per share. The cyberattack affected the company’s earnings by 74 cents per share in the first quarter, with an expected full-year impact of $1.15 to $1.35 per share. The company’s medical cost ratio was 84.3%, higher than analysts’ expectations of 83.8%, indicating higher profitability. UnitedHealth’s two major business units, Optum and UnitedHealthcare, both reported revenue growth in the first quarter. Optum’s revenue rose to $61.1 billion, driven by patient care and pharmacy services, while UnitedHealthcare’s revenue reached $75.4 billion due to an increase in the number of consumers served. Despite the cyberattack and the Brazil sale, UnitedHealth updated its full-year earnings outlook to $17.60 to $18.20 per share. The company will provide further details during its quarterly conference call with investors.

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