UnitedHealth Group Inc. UNH reported first-quarter 2025 adjusted earnings per share (EPS) of $7.20, which missed the Zacks Consensus Estimate of $7.27. Nevertheless, the underside line superior 4.2% yr over yr. (See the Zacks Earnings Calendar to remain forward of market-making information.)
Revenues rose 9.8% yr over yr to $109.58 billion. Nevertheless, the highest line missed the consensus mark by 1.4% attributable to lower-than-expected premiums, which is uncommon for the juggernaut.
The weaker-than-expected first-quarter outcomes had been attributable to elevated medical prices, partly offset by home industrial membership progress and power witnessed in Optum Rx.
UnitedHealth Group Integrated Value, Consensus and EPS Shock
UnitedHealth Group Integrated price-consensus-eps-surprise-chart | UnitedHealth Group Integrated Quote
UnitedHealth’s first-quarter premium of $86.5 million elevated from $78 million a yr in the past however missed the consensus mark by 0.5%. UnitedHealth’s medical care ratio (MCR) was 84.8% within the first quarter of 2025, which deteriorated from 84.3% a yr in the past. The metric was decrease than the Zacks Consensus Estimate of 85.9% and our estimate of 85.3%. MCR witnessed a rise because of the beforehand famous reductions in Medicare funding, timing of Medicaid redeterminations and adjustments within the member combine. Medical prices of $73.4 billion rose from $65.7 billion a yr in the past.
First-quarter complete working prices of $100.5 billion escalated 9.4% yr over yr attributable to greater medical prices and the price of merchandise offered. The determine got here greater than our mannequin estimate of $99.8 billion. The primary-quarter 2025 working value ratio improved to 12.4% from 14.1% in 2024 attributable to elevated technological and different working efficiencies and Half D packages.
UnitedHealth’s working earnings grew 15% yr over yr to $9.1 billion within the first quarter. The online margin improved from adverse 1.4% a yr in the past to five.7%.
Revenues of the well being advantages enterprise of UnitedHealth, UnitedHealthcare, superior 12.3% yr over yr to $84.6 billion within the first quarter attributable to a rise in home industrial membership progress. The metric beat the Zacks Consensus Estimate of $83.2 billion.
Earnings from operations amounted to $5.2 billion within the first quarter, up from $4.4 billion a yr in the past. The working margin elevated 40 bps yr over yr to six.2%.
Revenues within the Optum enterprise line had been $63.9 billion, which rose 4.6% yr over yr attributable to robust contributions from Optum Rx. Nevertheless, the determine fell in need of the consensus mark of $67 billion.
Optum’s earnings from operations climbed to $3.9 billion from $3.5 billion a yr in the past. The working margin of 6.1% elevated 30 bps yr over yr.
The UnitedHealthcare enterprise catered to 50.1 million folks as of March 31, 2025, which grew 1.9% yr over yr attributable to its self-funded industrial advantages. The determine missed the Zacks Consensus Estimate of fifty.6 million however marginally beat our estimate of fifty million.
UnitedHealth exited the primary quarter with money and short-term investments of $34.3 billion, which rose from the 2024-end degree of $29.1 billion.
Whole belongings of $309.8 billion elevated from the $298.3 billion determine at 2024-end.
Lengthy-term debt, much less of present maturities, amounted to $71.29 billion, down from the $72.36 billion determine as of Dec. 31, 2024. Quick-term borrowings and the present portion of long-term debt had been $9.99 billion.
Whole fairness of $100.8 billion superior from the 2024-end degree of $98.3 billion.
UnitedHealth generated working money flows of $5.5 billion in first quarter of 2025, which surged from the prior-year determine of $1.1 billion.
UnitedHealth rewarded greater than $5 billion to its shareholders within the type of share repurchases ($3 billion) and dividends ($1.9 billion) within the first quarter.
Administration now initiatives adjusted web EPS between $26 and $26.50 for 2025, down from the earlier steering vary of $29.50-$30 in contrast with the 2024 determine of $27.66. Web earnings are anticipated within the band of $22.5-$23.1 billion, up from the 2024 degree of $14.4 billion.
Revenues had been earlier estimated between $450 billion and $455 billion in 2025, up from $400.3 billion in 2024. Working money flows had been projected to be $32-$33 billion, up from $24.2 billion in 2024.
UNH at present carries a Zacks Rank #2 (Purchase).
Another top-ranked shares within the broader medical house are Aveanna Healthcare Holdings Inc. AVAH, Common Well being Providers, Inc. UHS and Choice Care Well being, Inc. OPCH, every sporting a Zacks Rank #1 (Sturdy Purchase) at current. You possibly can see the whole record of at the moment’s Zacks #1 Rank shares right here.
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The Zacks Consensus Estimate for Common Well being Providers’ current-year earnings of $18.94 per share has witnessed two upward revisions up to now 30 days towards no motion in the wrong way. Common Well being Providers beat earnings estimates in three of the trailing 4 quarters, with the typical shock being 15.5%. The consensus estimate for current-year revenues is pegged at $17.1 billion, implying 8.1% year-over-year progress.
The Zacks Consensus Estimate for Choice Care Well being’s current-year earnings of $1.68 per share has witnessed six upward revisions up to now 60 days towards no motion in the wrong way. Choice Care Well being beat earnings estimates in every of the trailing 4 quarters, with the typical shock being 15.9%. The consensus estimate for current-year revenues is pegged at $5.4 billion, calling for 8.9% year-over-year progress.
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