UnitedHealth Group (UNH) posted better-than-expected first quarter earnings Thursday, while boosting its full-year profit forecast, as revenues from its healthcare solutions division Optum paced topline gains.
UnitedHealth said adjusted profits for the three months ended in March came in at $5.49 a share, up 3.4% from the same period last year and 12 cents ahead of the Wall Street consensus forecast of $5.37 per share. Group revenue, UnitedHealth said, rose 14% to $80.1 billion, again topping analysts' estimates of a $78.8 billion tally, while Optum revenue rose 19% to $43.1 billion.
Looking into the 2022 calendar year, Dow component UnitedHealth forecast adjusted earnings between $21.20 to $21.70 per share, a 10 cents per share boost from its prior estimate.
"Disciplined execution of our long-term strategy, with a sharp focus on ensuring access to care for the people we serve, enabled us to deliver high-quality, diversified growth across Optum and UnitedHealthcare during this first quarter of 2022,” said CEO Andrew Witty.
UnitedHealth shares were marked 0.6% higher in mid-day trading Thursday following the earnings release to change hands at $539.94 each after hitting a record high of $553.29 earlier in the session.
Earlier this month, UnitedHealth agreed to extend the closing date of its merger with Change Healthcare (CHNG), first unveiled in January of last year, to the final days of 2022 amid a move by the U.S. Department of Justice to block the $8 billion deal.
"Change Healthcare and Optum will detail the benefits of this combination at a two-week trial scheduled to begin on August 1," the companies said on April 5. "The DoJ's attempt to block the combination is without merit and serves only to delay improving the experience and outcomes for all participants in the health system."
Optum, the division into which Change will be folded, will need to pay a $650 million termination fee if the court decides to scupper the deal.
