UnitedHealth Group (NYSE: UNH) reported its third quarter financial results before the market open on Tuesday. The healthcare provider topped analysts’ estimates, which sent shares 6% higher shortly after the opening bell.
For the third quarter, UnitedHealth reported earnings of USD 3.88 per share on revenue of USD 60.4 Billion. Analysts anticipated earnings of USD 3.75 per share on revenue of USD 59.8 Billion.
Revenues for the quarter grew by 6.7% year-over-year, primarily led by the double-digit percentage growth in UnitedHealth’s Optum segment.
Third quarter earnings for UnitedHealth increased by 9.2% to USD 5.0 Billion, also led by the double-digit growth in Optum. On an adjusted basis, earnings grew by 13.8% year-over-year.
Medical costs trends for the quarter improved by 20 basis points from the same period a year ago to 14.8%, reflecting the deferral of the health insurance tax and continued effects of operating cost productivity improvements, net of the effect of business mix changes and continued investments in innovations, service, and growth.
Revenues for Optum grew by 13.3% to USD 28.8 Billion at the end of the quarter. OptumHealth reported revenues of USD 8.1 Billion, representing a 34.4% increase year-over-year. OptumRx reported revenues of USD 18.5 Billion, increasing by 5.8% year-over-year.
“Optum and UnitedHealthcare are driving value for our customers, creating momentum to finish the year strongly and move into 2020 with an intense focus on accelerating the growth of our businesses by advancing quality, affordability and satisfaction for those we serve,” said David S. Wichmann, Chief Executive Officer of UnitedHealth Group.
Based on the stronger-than-expected quarter, UnitedHealth increased its full year outlook. For the remainder of the fiscal year, UnitedHealth is expecting full-year earnings between USD 14.90 to USD 15.00 per share.