10-KPeriod: FY2018

UNITEDHEALTH GROUP INC Annual Report, Year Ended Dec 31, 2018

Filed February 12, 2019For Securities:UNH

Summary

UnitedHealth Group Inc. reported strong performance in its 2018 fiscal year, demonstrating significant revenue growth driven by its UnitedHealthcare and Optum segments. The company's diversified business model, encompassing health benefits and health services, continues to yield positive financial results. Key financial highlights include substantial revenue increases and robust earnings from operations, reflecting effective cost management and a growing customer base. The company's strategic focus on leveraging data and technology, coupled with clinical expertise across its platforms, positions it well for continued expansion and market leadership. Investors can look to UnitedHealth Group's consistent financial performance and its strategic initiatives as indicators of its ongoing strength and future growth potential.

Financial Highlights

56 data points
Beta

Revenue

$226.25B

88.1% Gross Margin

Net Income

$11.99B

5.3% Net Margin

EPS (Diluted)

$12.19

Total Assets

$152.22B

Cash & Equivalents

$10.87B

Free Cash Flow

$13.65B

Financial Statements
Beta
Revenue$226.25B
Cost of Revenue$27.00B
Gross Profit$199.25B
SG&A Expenses$34.07B
Operating Expenses$208.90B
Operating Income$17.34B
Interest Expense$1.40B
Net Income$11.99B
EPS (Basic)$12.45
EPS (Diluted)$12.19
Shares Outstanding (Basic)963.00M
Shares Outstanding (Diluted)983.00M

Key Highlights

  • 1Consolidated revenues increased by 12% to $226.2 billion in 2018.
  • 2Earnings from operations grew by 14% to $17.3 billion.
  • 3Diluted earnings per share increased by 14% to $12.19.
  • 4UnitedHealthcare revenues grew 12%, driven by Medicare & Retirement and Community & State segments.
  • 5Optum revenues increased by 11%, with strong performance across OptumHealth, OptumInsight, and OptumRx.
  • 6Cash flows from operations increased by 16% to $15.7 billion.
  • 7The company returned capital to shareholders through dividends and share repurchases, increasing the annual dividend to $3.60 per share.

Frequently Asked Questions

Revenue growth was primarily driven by an increase in the number of individuals served across UnitedHealthcare's risk-based businesses, favorable pricing trends influenced by the Health Insurance Industry Tax, and broad growth across the Optum business segments, particularly in care delivery, pharmacy services, and advisory services.

The Optum segment delivered strong results with an 11% revenue increase. OptumHealth saw growth in care delivery and behavioral health, OptumInsight benefited from increased demand for data analytics and advisory services, and OptumRx experienced growth in specialty pharmacy and home delivery services.

UnitedHealth Group manages medical costs through a combination of underwriting criteria, product design, negotiation of favorable provider contracts, and comprehensive care management programs. They also leverage Optum's capabilities to coordinate patient care and improve affordability.

The company returned capital to shareholders through dividends and share repurchases. In June 2018, the annual cash dividend rate was increased to $3.60 per share. UnitedHealth Group also actively repurchases its common stock under an ongoing share repurchase program.