MW UnitedHealth stock to cut 680 points off the Dow's price after earnings debacle

By Tomi Kilgore

The stock is set to suffer its worst day since 1999 after the first quarterly earnings miss in years and the full-year outlook was slashed

Shares of UnitedHealth Group Inc. took a historic dive in early Thursday trading after the health insurer slashed its full-year outlook and missed quarterly expectations for the first time in years, citing increased care activity in its Medicare Advantage business as the first quarter ended.

The stock $(UNH)$ tumbled 18.9% in premarket trading, which puts it on track for its biggest one-day selloff since September 1999.

The implied price decline would cut about 680 points off the Dow Jones Industrial Average's DJIA price.

Dow futures (YM00) were shedding about 393 points, or 1%, while S&P 500 futures (ES00) were rising 0.6%.

The company said it served more people during the first quarter, but the problem was there a lot more people using UnitedHealthcare's Medicare Advantage coverage needed treatment than previously expected.

That "heightened care activity," which was most notable within physician and outpatient services, became visible as the quarter closed.

UnitedHealth now expects 2025 adjusted earnings per share, which excludes nonrecurring items, of $26 to $26.50, down from a previous guidance range of $29.50 to $30.

The company also reported first-quarter adjusted EPS that rose to $7.20 from $6.91 a year ago, but missed the average analyst EPS estimate compiled by FactSet of $7.29.

That was the first quarterly EPS miss in at least five years, based on available FactSet data going back to the first quarter of 2020.

On top of the increased senior care activity, the company said unexpected changes in the profile of members in its Optum Health business hurt planned reimbursements. And there was a greater-than-expected impact to current and new "complex patients" from Medicare funding cuts.

Total revenue for the quarter grew 9.8% to $109.58 billion, but that also missed the FactSet consensus of $111.58 billion.

-Tomi Kilgore

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April 17, 2025 06:48 ET (10:48 GMT)

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