10-QPeriod: Q3 FY2022

UNITEDHEALTH GROUP INC Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 2, 2022For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) reported a strong third quarter of 2022, demonstrating robust financial performance and continued growth across its business segments. Total revenues reached $80.9 billion, a 12% increase year-over-year, driven by significant growth in both the UnitedHealthcare and Optum segments. UnitedHealthcare saw an 11% revenue increase, serving approximately 910,000 more people, primarily in Medicare Advantage and Medicaid programs. The Optum segment exhibited even stronger growth, with revenues up 17%, reflecting the continued expansion of its health services offerings. Net earnings attributable to common shareholders increased by 29% to $5.3 billion for the quarter, resulting in diluted earnings per share of $5.55, up from $4.28 in the prior year. For the first nine months of 2022, net earnings grew 16% to $15.4 billion. The company's strong operational performance is supported by substantial cash flows from operations, which amounted to $30.7 billion for the nine-month period. Significant investments in strategic acquisitions, notably Change Healthcare and LHC Group, highlight the company's commitment to expanding its capabilities and market position.

Financial Highlights

54 data points
Beta

Revenue

$80.89B

89.7% Gross Margin

Net Income

$5.26B

6.5% Net Margin

EPS (Diluted)

$5.55

Total Assets

$243.06B

Cash & Equivalents

$38.84B

Free Cash Flow

$17.82B

Financial Statements
Beta
Revenue$80.89B
Cost of Revenue$8.31B
Gross Profit$72.59B
SG&A Expenses$11.66B
Operating Expenses$73.43B
Operating Income$7.46B
Interest Expense$516.00M
Net Income$5.26B
EPS (Basic)$5.63
EPS (Diluted)$5.55
Shares Outstanding (Basic)935.00M
Shares Outstanding (Diluted)948.00M

Key Highlights

  • 1Total revenues for the third quarter of 2022 grew 12% year-over-year to $80.9 billion.
  • 2Net earnings attributable to common shareholders increased by 29% to $5.3 billion for the third quarter.
  • 3Diluted earnings per share (EPS) rose to $5.55 for the quarter, up from $4.28 in the prior year.
  • 4UnitedHealthcare served 910,000 more people, with significant growth in Medicare Advantage and Medicaid programs.
  • 5Optum segment revenues increased by 17%, driven by strong performance across Optum Health, Insight, and Rx.
  • 6Cash flows from operating activities for the nine months ended September 30, 2022, were robust at $30.7 billion.
  • 7The company is proceeding with significant strategic acquisitions, including the recently completed Change Healthcare acquisition.

Frequently Asked Questions

Revenue growth was primarily driven by an increase in the number of people served across both the UnitedHealthcare and Optum segments. UnitedHealthcare saw growth from Medicare Advantage and Medicaid programs, while Optum experienced expansion in its health services offerings.

Profitability saw a significant improvement. Net earnings attributable to common shareholders increased by 29% to $5.3 billion, and diluted earnings per share rose to $5.55 from $4.28 in the prior year's third quarter.

UnitedHealth Group is actively pursuing strategic growth through acquisitions. The company noted significant pending business combinations, including Change Healthcare (which was completed shortly after the reporting period) and LHC Group, indicating a continued focus on expanding its capabilities and market reach.

The company's Medical Care Ratio (MCR) decreased in Q3 2022. While medical costs increased due to growth in people served, this was offset by favorable COVID-19 effects and business mix. The company continues to engage physicians and consumers to help them achieve high-quality, affordable care.