UnitedHealth Q3 Beat Street, Raises FY22 Profit Guidance – UnitedHealth Group (NYSE:UNH)

• UnitedHealth Group Inc UNH has reported Q3 FY22 sales of $80.89 billion, up 12% Y/Y, beating the consensus of $80.50 billion.
• The company said Q3 growth was driven by continued expansion in the number of people served throughout UnitedHealthcare and in the value-based care initiatives at Optum Health.
• Adjusted EPS of $5.79 increased 28% Y/Y, surpassing the consensus of $5.42.
• The company generated an operating cash flow of $8.8 billion or 1.6x net income.
• The medical care ratio was 81.6% compared to 81.5% a year ago due to COVID effects and business mix.
• The operating cost ratio of 14.4% compared to 14.6% in Q3 FY21.
• UnitedHealthcare segment revenues grew 11% to $62 billion compared to last year, with operating earnings of $3.8 billion compared to $3.9 billion last year.
• The total number of people served by UnitedHealthcare has grown by over 850,000 in 2022, including 185,000 in Q2.
• Optum segment sales were up 17% to $46.6 billion, and operating earnings rose to $3.7 billion from $3.3 billion a year ago.
• Guidance: UnitedHealth expects FY22 adjusted EPS of $21.85-$22.05, up from the previous guidance of $21.40 – $21.90, versus the consensus of $21.87.
• Price Action: UNH shares are up 1.59% at $518 during premarket trading on the last check Friday.

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