UnitedHealth Group 3Q Profit Slips, But Above Expectations
MINNEAPOLIS (AP) -- UnitedHealth Group's third-quarter profit slipped, but the nation's largest health insurer still beat Wall Street expectations due in part to prescription drug management and its other fast-growing businesses.
Revenue from the Minneapolis company's Optum unit, which controls fast-growing businesses like prescription management, jumped 61 percent to $19.3 billion after UnitedHealth bought Catamaran, a pharmacy benefits manager, in a deal valued at more than $12 billion.
Health insurance is UnitedHealth's main business, but it has been relying more on Optum for growth. That segment also provides technology services and runs clinics and doctor's offices.
Overall, UnitedHealth's earnings fell less than 1 percent to nearly $1.6 billion, or $1.65 per share, in the three months that ended Sept. 30. That compares with earnings of $1.6 billion, or $1.63 per share, in last year's quarter, when the company had more shares outstanding.
Revenue soared 27 percent to $41.49 billion.
UnitedHealth exceeded expectations. Analysts surveyed by Zacks Investment Research projected, on average, earnings of $1.64 per share on $41.49 billion in revenue.
UnitedHealth also reaffirmed its forecast for full-year earnings of $6.25 to $6.35 per share. It has already raised that forecast twice this year.
Analysts expect, on average, earnings of $6.33 per share, according to FactSet.
Shares of UnitedHealth Group Inc. rose more than 1 percent before the opening bell Thursday. Shares have risen 21 percent since the beginning of the year, while the Standard & Poor's 500 index has fallen 3 percent.
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