UnitedHealth shares jump on strong profits
MINNEAPOLIS — Strong performance at the company’s health services unit drove better- than- expected first- quarter results at UnitedHealth Group, company officials said Thursday.
UnitedHealth is the nation’s largest health insurer. The company during the period ending March 31 added more than 1 million people to coverage through its public and private health insurance offerings. On medical cost trends, company officials said Thursday there was no surprise increase in use of health services by patients.
First- quarter results also featured earnings growth in the company’s Optum division, despite costs related to an announced $ 12.8 billion acquisition of Illinois- based Catamaran Corp.
Optum provides services to other health insurers including pharmacy benefits management — a line of business that company officials say is poised for growth with the Catamaran deal.
“OptumHealth was the star here, adding 33 percent to revenue from strength in care delivery and population health management services for third party payers,” wrote Sheryl Skolnick, an analyst with Mizuho Securities, in a note to investors Thursday.
UnitedHealth posted a profit of $ 1.41 billion on revenue of $ 35.76 billion for the first quarter. During the same period last year, UnitedHealth had earnings of nearly $ 1.1 billion on $ 31.7 billion in revenue.
On a per share basis, UnitedHealth’s earnings came in at $ 1.46, which was better than the $ 1.35 per share expected among analysts surveyed by Thomson Reuters.