UnitedHealth quarterly profit beats expectations driven by Optum strength

UnitedHealth quarterly profit beats expectations driven by Optum strength

UnitedHealth Group Inc reported a better-than-expected quarterly profit on Wednesday, as the largest U.S. health insurer benefited from higher revenue from its Optum unit, which includes its pharmacy benefits management business.

FILE PHOTO: Picture illustration of a UnitedHealth Group health insurance card in a wallet
FILE PHOTO: A UnitedHealth Group health insurance card is seen in a wallet in this picture illustration October 14, 2019. REUTERS/Lucy Nicholson/Illustration/File Photo

REUTERS: UnitedHealth Group Inc reported a better-than-expected quarterly profit on Wednesday, as the largest U.S. health insurer benefited from higher revenue from its Optum unit, which includes its pharmacy benefits management business.

The company affirmed its full-year outlook for 2020 adjusted earnings of US$16.25 to US$16.55 per share.

UnitedHealth has bolstered its fastest growing Optum business with a string of small-scale acquisitions, the latest being a US$300 million purchase of Diplomat Pharmacy.

Revenue from Optum, which manages drug benefits and offers healthcare data analytics services, rose about 8per cent to US$29.8 billion.

On an adjusted basis, the company earned US$3.90 per share, exceeding analyst estimates of US$3.78.

Net earnings attributable to shareholders rose to US$3.54 billion, or US$3.68 per share, in the three months ended Dec. 31, from US$3.04 billion, or US$3.10 per share, a year earlier.

Total revenue rose to US$60.90 billion from US$58.42 billion.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Bernard Orr)

Source: Reuters

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