UnitedHealth earnings soar 26 percent

UnitedHealth Group’s third-quarter earnings soared 26 percent to beat Wall Street expectations as the nation’s largest health insurer sold more coverage to retirees and continued to grow its business outside insurance.

The company also raised its forecast for 2017 and signaled it expects more growth next year. Its shares then shot up past $200 to reach another all-time high after markets opened.

UnitedHealth said Tuesday that it gained nearly 1 million more customers compared to last year’s quarter, largely due to growth in its Medicare and retirement business. UnitedHealth is the nation’s largest provider of Medicare Advantage plans, which are privately run versions of the government’s Medicare program for the elderly and disabled people.

That gain more than countered a revenue hit the insurer took from the deferral of an insurance tax and the company’s decision to scale back its presence on the Affordable Care Act’s insurance marketplaces to only a few states.

Operating earnings grew 14 percent to $2.4 billion for the company’s main business, health insurance, as total enrollment topped 49 million people. But its Optum segment also saw earnings increase to $1.7 billion. Optum provides pharmacy benefits management and technology services and also operates clinics and doctor’s offices.

Overall, the Minnetonka, Minnesota, company earned nearly $2.49 billion as revenue grew 9 percent to $50.32 billion. Adjusted earnings totaled $2.66 per share.

Analysts expected earnings of $2.56 per share on $50.35 billion in revenue, according to FactSet.