UnitedHealth Group shares experienced a significant drop of more than 5% ahead of trading due to disappointing second quarter results, raising concerns among investors.
Key Facts on UNH Results
UnitedHealth Group, the largest health insurer in the U.S., reported adjusted earnings per share for Q2 at $4.08, significantly below analyst expectations of $4.45. Meanwhile, overall revenue of $111.62 billion slightly exceeded analyst forecasts of $111.59 billion. The medical care ratio deteriorated to 89.4% from 85.1% in the prior year, driven by higher medical costs in Medicare Advantage plans.
Analysis of UnitedHealth Group Shares
As of 7:07 AM EDT Tuesday, UnitedHealth Group shares traded at $271.08, down $11.04 or 3.91% from Monday's close. The decline followed the earnings announcement and weak guidance, with shares initially falling more than 5%. Over the last year, shares have dropped 49.55%, while the S&P 500 gained 17.05%.
Forecasts and Recommendations for UNH
The company's guidance for 2025 fell dramatically short of Wall Street expectations, projecting earnings of at least $16.00 per share versus consensus estimates of $20.91. The medical care ratio is expected to remain elevated at 89% to 89.5%, indicating ongoing pressure from higher medical costs.
The second quarter results and new forecasts from UnitedHealth Group raise concerns for investors and analysts alike, potentially impacting the market in the near future.
