Summary
UnitedHealth Group's second-quarter 2017 report indicates robust financial performance with a significant increase in both revenues and earnings. Total revenues grew by 8% year-over-year to $50.1 billion, driven by strong organic growth across its UnitedHealthcare and Optum segments. Net earnings attributable to common shareholders surged by 30% to $2.3 billion. The company's strategic initiatives and operational efficiencies are reflected in the improved profitability, with earnings from operations increasing by 16%. UnitedHealthcare saw a notable expansion in its Medicare Advantage and Medicaid offerings, serving an additional 1.5 million people overall. Optum also demonstrated strong growth, with all its sub-segments — OptumHealth, OptumInsight, and OptumRx — contributing to a 10% increase in Optum's total revenue.
Financial Highlights
55 data points| Revenue | $50.05B |
| Cost of Revenue | $5.89B |
| Gross Profit | $44.16B |
| SG&A Expenses | $7.33B |
| Operating Expenses | $46.32B |
| Operating Income | $3.73B |
| Interest Expense | $301.00M |
| Net Income | $2.28B |
| EPS (Basic) | $2.37 |
| EPS (Diluted) | $2.32 |
| Shares Outstanding (Basic) | 964.00M |
| Shares Outstanding (Diluted) | 985.00M |
Key Highlights
- 1Total revenues increased by 8% to $50.1 billion for the three months ended June 30, 2017, compared to $46.5 billion in the prior year period.
- 2Net earnings attributable to UnitedHealth Group common shareholders rose by 30% to $2.3 billion, or $2.32 per diluted share, for the quarter.
- 3Earnings from operations grew by 16% to $3.7 billion, showcasing improved profitability across the business.
- 4UnitedHealthcare served approximately 1.5 million more individuals, highlighting growth in its health benefits segment, particularly in Medicare Advantage and Medicaid.
- 5Optum segment revenues increased by 10% to $22.7 billion, driven by strong performance across OptumHealth, OptumInsight, and OptumRx.
- 6The company's effective income tax rate decreased significantly to 31.5% from 40.0% in the prior year, largely due to a moratorium on the Health Insurance Industry Tax.
- 7Cash flows from operating activities were strong, reaching $8.6 billion for the six months ended June 30, 2017, supported by substantial premium payments.