Benzinga - by Vandana Singh, Benzinga Editor.
UnitedHealth Group (NYSE:UNH) shares are trading higher on Tuesday after the insurance giant reported better-than-expected revenue in first-quarter 2024 as it still deals with the cyberattack on its subsidiary Change Healthcare in February this year.
The company reported adjusted EPS of $6.91, up from $6.26 a year ago, beating the consensus of $6.62.
UnitedHealth’s revenues increased nearly $8 billion to $99.8 billion, beating the consensus of $99.3 billion.
First-quarter earnings from operations were $7.9 billion, including $872 million in unfavorable charges for cyber attack.
Adjusted earnings from operations of $8.5 billion include the Change Healthcare business disruption impacts, excluding the cyberattack direct response costs.
UnitedHealth has provided over $6 billion in advance funding and interest-free loans to support care providers impacted by the cyber attack.
According to the press release, the company incurred a charge of around $7 billion during the quarter from selling its Brazil operations.
UnitedHealth reported a medical cost ratio (MCR) of 84.3% for the first quarter.
That included 40 basis points of impact from the cyberattack, the company said. A lower ratio typically indicates higher profitability.
Optum reported $61.1 billion in revenue for the first quarter, up from $54.1 billion a year ago, led by its patient care and pharmacy arms due to “strong expansion” in the number of people served.
UnitedHealthcare reported revenue of $75.4 billion for the first quarter, up from $70.5 billion a year ago, reflecting growth in the number of people served domestically.
The unit’s total number of domestic consumers served grew by 2 million during the first quarter.
Guidance: UnitedHealth expects a 2024 net profit of $17.60 to $18.20 per share to reflect the Brazil sale and the estimated direct response costs of the cyberattack.
The company maintained an adjusted net earnings outlook of $27.50 to $28 per share versus a consensus of $27.53.
The company said the total impact from the cyberattack in the first quarter was 74 cents per share, and it expects the full-year 2024 impact to be between $1.15 and $1.35 per share.
Price Action: UNH shares are up 7.52% at $479.15 during the premarket session on the last check Tuesday.
Photo courtesy of United health
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.