Early Access

10-KPeriod: FY2007

UNITEDHEALTH GROUP INC Annual Report, Year Ended Dec 31, 2007

Filed February 21, 2008For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) reported robust financial performance for the fiscal year ended December 31, 2007. The company demonstrated significant growth in revenues and earnings, driven by its diversified health and well-being services. Key segments like Health Care Services, OptumHealth, Ingenix, and Prescription Solutions all contributed to this positive trend. The company's strategic focus on enhancing health system performance and improving overall health outcomes for its approximately 70 million members appears to be yielding strong results, reflected in a 12% increase in net earnings over the prior year. Investors can take confidence in UNH's ability to navigate a complex regulatory environment while achieving substantial growth. The company's proactive approach to managing medical costs and its disciplined approach to capital allocation, including significant share repurchases, further underscore its financial strength. While facing the typical industry challenges and regulatory scrutiny, UNH's consistent performance and strategic investments in its various business units position it favorably for continued success.

Financial Statements
Beta
Revenue$75.43B
Cost of Revenue$768.00M
Gross Profit$74.66B
SG&A Expenses$10.58B
Operating Expenses$67.58B
Operating Income$7.85B
Interest Expense$544.00M
Net Income$4.65B
EPS (Basic)$3.55
EPS (Diluted)$3.42
Shares Outstanding (Basic)1.31B
Shares Outstanding (Diluted)1.36B

Key Highlights

  • 1Consolidated revenues increased by 5% to $75.4 billion, indicating strong top-line growth.
  • 2Diluted net earnings per share rose by 15% to $3.42, demonstrating improved profitability.
  • 3Earnings from operations grew by 12% to $7.8 billion, showcasing operational efficiency.
  • 4The company repurchased approximately 125.3 million shares of common stock for $6.6 billion in 2007, returning value to shareholders.
  • 5UnitedHealth Group operates across four key segments: Health Care Services, OptumHealth, Ingenix, and Prescription Solutions, all contributing to revenue and earnings.
  • 6The company serves approximately 70 million Americans, highlighting its significant market reach.
  • 7The company's financial results reflect an increasing focus on its new segment reporting structure, aligning with how management oversees the business.

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