Summary
UnitedHealth Group Inc. (UNH) reported a strong third quarter ending September 30, 2012, with significant year-over-year growth in both revenues and net earnings. Total revenues increased by 8%, reaching $27.3 billion for the quarter, and net earnings saw a substantial 23% jump to $1.6 billion. Diluted earnings per share also rose by 28% to $1.50, indicating improved profitability on a per-share basis. The company's UnitedHealthcare segment, its largest, demonstrated robust performance with an 8% revenue increase, driven by strong growth in Medicare Advantage and Medicaid membership, alongside expansion in fee-based commercial products. The Optum segment also contributed positively, with OptumHealth and OptumInsight showing double-digit revenue growth. This growth was achieved while managing medical costs effectively, as indicated by a decrease in the consolidated medical care ratio.
Financial Highlights
53 data points| Revenue | $27.30B |
| Cost of Revenue | $627.00M |
| Gross Profit | $26.68B |
| SG&A Expenses | $4.28B |
| Operating Expenses | $24.69B |
| Operating Income | $2.61B |
| Interest Expense | $158.00M |
| Net Income | $1.56B |
| EPS (Basic) | $1.52 |
| EPS (Diluted) | $1.50 |
| Shares Outstanding (Basic) | 1.02B |
| Shares Outstanding (Diluted) | 1.04B |
Key Highlights
- 1Total revenues increased by 8% to $27.3 billion for the three months ended September 30, 2012.
- 2Net earnings grew by 23% to $1.6 billion, and diluted EPS increased by 28% to $1.50.
- 3UnitedHealthcare segment revenues rose 8%, supported by a 6% increase in total medical membership, including significant growth in Medicare Advantage (18%) and Medicaid (11%).
- 4Optum segment revenues remained stable for the quarter, but OptumHealth and OptumInsight showed strong double-digit revenue growth of 19% and 15% respectively.
- 5The consolidated medical care ratio improved by 170 basis points to 79.0%, reflecting effective cost management.
- 6The company repurchased $2.6 billion of common stock in the first nine months of 2012 and increased its quarterly dividend to $0.2125 per share.
- 7UnitedHealth Group announced its intent to acquire 90% of Amil Participações S.A., a major health care company in Brazil, for approximately $4.7 billion, signaling international expansion.