Morning Briefing
Summaries of health policy coverage from major news organizations
UnitedHealth, HCA Raise Forecasts Based On Quarterly Returns
UnitedHealth Group Inc., the largest U.S. health insurer, raised its 2015 forecast after posting first-quarter profit that topped analysts’ estimates as it added customers and its Optum technology unit boosted revenue. Earnings, excluding certain items, will be $6.15 to $6.30 a share, the Minnetonka, Minnesota-based insurer said Thursday in a statement. The company had said as recently as last month that 2015 profit would be $6 to $6.25 a share. Analysts had estimated $6.21, on average, according to data compiled by Bloomberg. (Tracer, 4/16)
The company raised its full-year revenue outlook by $2 billion to $143 billion due to strength in the first quarter. It increased per-share earnings expectations to a range of $6.15 to $6.30 from the previous range of $6.00 to $6.25. Analysts polled by Thomson Reuters are expecting earnings of $6.21 a share and revenue of $141.68 billion. (Chen, 4/16)
UnitedHealth Group Inc. (UNH) on Thursday reported first-quarter profit of $1.41 billion. On a per-share basis, the Minneapolis-based company said it had net income of $1.46. The results surpassed Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of $1.33 per share. (d4/16)
Hospital operator HCA Holdings Inc. on Wednesday reported better-than-expected preliminary results for the March quarter and raised its full-year guidance amid higher admissions and emergency-room visits. Shares of HCA, up 62% over the past year, rose 3.1% to $79.70 in morning trading. (Chen, 4/15)
Investors have flocked to publicly traded health insurers, as evidenced by soaring stocks so far in 2015. Although optimism runs high in the managed-care sector, signs have emerged that medical costs are on the rise and could dampen earnings. The most prominent sign came Wednesday from HCA, the nation's largest for-profit hospital operator by revenue. The company said its inpatient, outpatient and emergency room admissions were all up significantly in the first quarter this year, an announcement that immediately brought down the stock prices of every large payer. (Herman, 4/15)
