AMED - UnitedHealth medical costs a focus as insurer prepares for Q2 results

2023-07-13 14:21:55 ET

UnitedHealth Group ( NYSE: UNH ) is scheduled to announce Q2 2023 earnings results on Friday, July 14, before market open.

Though UnitedHealth typically doesn't disappoint with investors, Q2 could be different. In June, company CFO John Rex said the insurer's medical care ratio, the share of premiums spent on healthcare costs, will come under pressure in Q2 2023 .

In Q1, the ratio was 82.2% compared to 82% in Q1 2022.

The consensus non-GAAP EPS estimate is $6.02 (+8% Y/Y) while the consensus revenue estimate is $90.96B (+13.2% Y/Y).

Over the last two years, UnitedHealth ( UNH ) has beaten EPS estimates eight out of eight quarters and beaten revenue estimates seven out of eight quarters.

Over the last three months, EPS estimates have seen seven upward revisions and 12 downward ones. Revenue estimates have seen 17 upward revisions and none downward.

In its Q1 earnings release in April. UnitedHealth ( UNH ) beat on the top and bottom lines and also upped its fiscal 2023 guidance .

Several Street firms recently lowered their price targets for the insurer. On July 13, Wells Fargo lowered its target to $561 from $616. Within the past week, Mizuho cut its target to $549 from $600, while JP Morgan lowered its target to $527 from $562. All three consider the stock overweight or buy.

One of the biggest developments in Q2 from UnitedHealth happened in late June with its merger deal with Amedisys ( AMED ) for $101 per share.

More on UnitedHealth earnings

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