UnitedHealth Group tumbles after earnings miss, new guidance underwhelms
It now expects annual adjusted earnings at least $16 per share, less than the current analyst consensus of $20.64.
UnitedHealth slumped 5% in premarket trading after it reported second-quarter earnings that missed expectations along with disappointing full-year guidance, the latest blows after an tumultuous year for the insurance giant.
The company reported adjusted earnings per share of $4.08, compared to the $4.48 analysts polled by FactSet were expecting. It also reported revenue of $111.6 billion, a bit higher than the $111.5 billion analysts had anticipated.
The company also updated its guidance for the full year after pulling it last quarter. It now expects annual adjusted earnings of at least $16 per share, well short of the current consensus estimate for $20.64.
UnitedHealth attributed the profit squeeze to rising medical costs.
In April, the company said it expected to report adjusted 2025 earnings of between $26.00 and $26.50 per share. UnitedHealth pulled that guidance in May.
Shares are down more than 40% since the start of the year amid myriad travails for the healthcare industry in general and this insurer in particular.
Tuesday marks the company’s first earnings report since it had a leadership shake-up. In May, its former CEO, Andrew Witty, left and was replaced with Stephen Helmsley, who led the company from 2006 through 2017.
The industry has been hit with rising costs of care, and UnitedHealth specifically has been hit with investigations into its Medicare Advantage practices. The company disclosed last week that it is cooperating with the Department of Justice on a probe relating to that side of its business.
Smaller insurance companies that rely heavily on government-sponsored programs — including Centene, Molina Healthcare, and Elevance Health — have reported earnings in recent weeks that have disappointed Wall Street.
