On Tuesday, UnitedHealth Group (NYSE: UNH) reported its second-quarter financial results. Even though the company reported better-than-expected revenue and earnings, shares of the company dropped 1.2% in premarket trading today due to the worse-than-expected premiums.
According to the company, total revenue increased from $50.05 billion to $56.09 billion for the second quarter, the result was in line with analysts’ estimates. In addition, net income for the second quarter increased from $2.28 billion, or $2.32 per share, for the same period last year, to $2.92 billion, or $2.98 per share. Adjusted earnings per share, according to the company, was $3.14 per share, which beat analysts’ estimates of $3.04 per share.
“Today, UnitedHealth Group delivers increasing value to more people, driven by strong execution, consistently high quality, deep relationships and our distinctive combination of clinical, technology and information capabilities,” David S. Wichmann, the chief executive officer of UnitedHealth Group, said in the statement on Tuesday.
However, premiums results fell below analysts’ estimates for the second quarter. According to the company, premiums for the quarter increased from $39.59 billion to $44.46 billion, which missed analysts’ estimates of $44.59 billion.
“As we look ahead, we will drive our growth on the strength of practical innovations that anticipate and respond to increasing consumer expectations and clear social needs,” David continued.