Summary
UnitedHealth Group (UNH) demonstrated strong financial performance in the third quarter and the first nine months of 2021, with significant revenue growth across its UnitedHealthcare and Optum segments. Total revenues increased by 11% for the quarter and 12% year-to-date, driven by growth in individuals served, particularly in Medicare Advantage and Medicaid programs, as well as expansion in Optum's care delivery and managed services. Net earnings attributable to common shareholders saw a substantial increase of 29% for the quarter, reaching $4.086 billion, contributing to a slight increase for the year-to-date period. Diluted earnings per share also improved significantly. The company's operational efficiency is highlighted by a decrease in the operating cost ratio, partly due to the repeal of the Health Insurance Tax. UNH continues to strategically deploy capital through share repurchases and dividends, while also advancing a significant acquisition of Change Healthcare, signaling confidence in future growth prospects.
Financial Highlights
55 data points| Revenue | $72.34B |
| Cost of Revenue | $7.80B |
| Gross Profit | $64.53B |
| SG&A Expenses | $10.72B |
| Operating Expenses | $66.63B |
| Operating Income | $5.71B |
| Interest Expense | $422.00M |
| Net Income | $4.09B |
| EPS (Basic) | $4.33 |
| EPS (Diluted) | $4.28 |
| Shares Outstanding (Basic) | 943.00M |
| Shares Outstanding (Diluted) | 955.00M |
Key Highlights
- 1Total revenues grew 11% year-over-year to $72.3 billion for the third quarter and 12% to $213.9 billion for the first nine months of 2021.
- 2Net earnings attributable to UnitedHealth Group common shareholders increased by 29% to $4.086 billion in Q3 2021.
- 3UnitedHealthcare saw an 11% revenue increase, driven by a 5% growth in total domestic medical members served (44.9 million).
- 4Optum segment revenues grew 14% in Q3 2021, with OptumHealth showing particularly strong growth (32%).
- 5Cash flows from operating activities were robust, totaling $19.1 billion for the first nine months of 2021, an increase of $3.05 billion year-over-year.
- 6The company declared a quarterly cash dividend of $1.45 per share, an increase from the previous rate, and repurchased shares totaling $3.95 billion in the first nine months of 2021.
- 7UnitedHealth Group is pursuing the acquisition of Change Healthcare, with an anticipated capital requirement of approximately $9 billion, subject to regulatory approvals.