UNH - Why UnitedHealth Stock Rocketed Nearly 7% Higher Today
2024-07-16 18:36:29 ET
A convincing bottom-line beat helped increase the share price of big health insurer UnitedHealth Group (NYSE: UNH) on Tuesday. Investors liked what they saw with the company's second-quarter results, and rewarded it by pushing the stock nearly 7% higher in value across the day. That compared very favorably to the S&P 500 index, which inched up by less than 1%.
In the quarter, UnitedHealth booked revenue of $98.9 billion, which was 6% higher on a year-over-year basis. Much of the growth came from the company's sprawling Optum healthcare services division, the unit that provides the bulk of its revenue. Optum's top line for the quarter was $62.9 billion, nearly 12% higher than the take in the same quarter of 2023.
As for profitability, that also saw an increase. On a non-GAAP (generally accepted accounting principles) basis, net income landed at just over $6.3 billion, or $6.80 per share. That easily topped the nearly $5.8 billion of the year-ago period.
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Why UnitedHealth Stock Rocketed Nearly 7% Higher Today