Summary
UnitedHealth Group Inc. (UNH) filed an 8-K on June 1, 2006, to provide additional financial details supporting its 2006 earnings per share (EPS) outlook of $2.88 to $2.92. The filing projects total revenues to approach $72 billion and operating earnings between $6.8 billion and $6.9 billion for the full year. It breaks down expected revenues across its various business segments, including UnitedHealthcare, Ovations, AmeriChoice, Health Care Services, Uniprise, Exante Financial Services, Specialized Care Services, and Ingenix, with specific revenue and operating margin targets provided for most. Key business unit updates include Ovations' significant growth in Medicare Part D, expecting to serve 5.7 to 6 million seniors with prescription drug plans and generating $5.7 billion to $6.0 billion in revenue. The Evercare unit, part of Ovations, is projected to reach 100,000 people with $1.5 billion in revenue, a 50% year-over-year increase. Exante Financial Services anticipates $200 million in assets under management by year-end. The filing also reiterates the forward-looking nature of these statements and lists potential risks and uncertainties, including healthcare cost increases, competition, regulatory changes, and ongoing investigations into stock option granting practices.
Key Highlights
- 12006 EPS outlook reaffirmed at $2.88 to $2.92 per share.
- 2Total revenue for 2006 projected to approach $72 billion.
- 3Operating earnings for 2006 estimated to be between $6.8 billion and $6.9 billion.
- 4Ovations segment anticipates significant growth in Medicare Part D, projecting 5.7 to 6 million seniors served and $5.7 billion to $6.0 billion in revenue.
- 5Evercare (a unit of Ovations) shows strong year-over-year growth, expected to generate $1.5 billion in revenue, a 50% increase.
- 6Specific revenue and operating margin targets provided for multiple business units, including UnitedHealthcare, AmeriChoice, Health Care Services, Uniprise, Specialized Care Services, and Ingenix.
- 7Exante Financial Services expects to reach $200 million in assets under management by year-end.