Early Access

10-QPeriod: Q1 FY2011

UNITEDHEALTH GROUP INC Quarterly Report for Q1 Ended Mar 31, 2011

Filed May 3, 2011For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) reported strong financial performance for the first quarter ended March 31, 2011. Total revenues increased by 10% year-over-year to $25.43 billion, driven by robust growth in both its UnitedHealthcare (Health Benefits) and Optum (Health Services) platforms. Net earnings saw a significant increase of 13% to $1.35 billion, with diluted earnings per share rising 18% to $1.22. This growth reflects strong organic expansion in risk-based offerings and success across its various business units, including acquisitions within the Optum segment. The company maintained a stable medical care ratio and operating cost ratio, demonstrating effective cost management despite a 9% increase in medical costs primarily due to membership growth and rising service costs, partially offset by moderated utilization. The company also highlighted its commitment to returning capital to shareholders, with significant share repurchases and dividend payments. UNH's solid liquidity position, bolstered by operating cash flows and available credit facilities, positions it well to navigate the evolving healthcare landscape, including the impacts of the Patient Protection and Affordable Care Act.

Financial Highlights

51 data points
Beta

Revenue

$25.43B

1.0% Gross Margin

Net Income

$1.35B

0.1% Net Margin

EPS (Diluted)

$1.22

Total Assets

$65.33B

Cash & Equivalents

$9.79B

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$25.43B
Cost of Revenue$599.00M
Gross Profit$24.83B
SG&A Expenses$3.62B
Operating Expenses$23.21B
Operating Income$2.22B
Interest Expense$118.00M
Net Income$1.35B
EPS (Basic)$1.24
EPS (Diluted)$1.22
Shares Outstanding (Basic)1.09B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Total revenues increased by 10% to $25.43 billion, driven by strong performance in both UnitedHealthcare and Optum segments.
  • 2Net earnings grew by 13% to $1.35 billion, with diluted EPS up 18% to $1.22.
  • 3UnitedHealthcare segment revenue grew 9% to $23.87 billion, serving over 33.9 million individuals.
  • 4Optum segment revenue increased 20% to $6.81 billion, fueled by acquisitions and growth in OptumHealth and OptumInsight.
  • 5Medical costs increased 9% to $18.73 billion, but the medical care ratio remained stable at 81.4%.
  • 6Operating costs increased 10% to $3.62 billion, while operating cost ratio remained stable at 14.2%.
  • 7The company repurchased approximately 14.9 million shares of common stock in the quarter for $620 million.

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