2023-10-13 11:44:03 ET
UnitedHealth Group Inc (NYSE: UNH) popped 2.0% on Friday after reporting better-than-expected financial results for its third quarter.
UnitedHealth raises full-year outlook
The stock is being rewarded also because UNH slightly raised its guidance for the full year.
UnitedHealth is now calling for its per-share earnings on an adjusted basis to fall between $24.85 and $25 in fiscal 2023. Its previous outlook was for $24.70 to $25.
Andrew Witty – its Chief Executive also said in a press release today that the managed-care company is well-positioned to “generate strong, diversified growth in the coming years”.
Shares of UnitedHealth have already gained about 18% over the past three months but famed investor Jim Cramer remains constructive on this “amazing health insurer”.
The average US family health insurance premium has increased from $6,000 in 2000 to $21,000 in 2022. That’s a 249% increase, or 5.8% per year, more than double inflation.
— Peter Mallouk (@PeterMallouk) October 6, 2023
The biggest beneficiaries of this massive increase in costs: health insurance companies. UnitedHealth… pic.twitter.com/dZ98txRdeB
Jim Cramer shares his view on UNH stock
Medical loss ratio stood at 82.3% in the third quarter – about 50 basis points better than the consensus estimates which, as per Cramer, is a sign that “UNH is back”.
Earlier this year, UnitedHealth had warned of increasing costs as seniors opted for non-urgent surgeries they had to postpone during the pandemic but that overhang “is now over”.
Jim Cramer said the earnings release was a positive news for the broader space as UNH is a “key component in the health-care universe”. Shares of peer Humana that his Charitable Trust owns are also up 2.0% at writing.
Wall Street currently has a consensus “buy” rating on UnitedHealth and sees upside in its shares to $571 on average – up about 8.0% from here.
UnitedHealth Q3 earnings snapshot
- Earned $5.841 billion versus the year-ago $5.262 billion
- Per-share earnings also jumped from $5.55 to $6.24
- Adjusted EPS printed at $6.56 as per the earnings report
- Revenue went up 14% year-on-year to $92.361 billion
- Consensus was $6.33 a share on $91.414 billion revenue
The healthcare stock has more than doubled since its record low at the peak of the COVID pandemic.
Watch here: https://www.youtube.com/embed/tD3VxFSDfio?feature=oembedThe post Jim Cramer on UnitedHealth Q3 earnings: ‘UNH is back’ appeared first on Invezz.