By Dean Seal
UnitedHealth Group recorded slightly higher earnings in the fourth quarter, though its sales gains fell short of analyst projections.
This is the health-care company's first earnings report since the killing last month of Brian Thompson, chief executive of insurance unit UnitedHealthcare. His death stunned the public, releasing an outpouring of anger at insurers and support for the man charged with his killing.
The Minnetonka, Minn., company Thursday posted net earnings of $5.54 billion, or $5.98 a share, compared with $5.46 billion, or $5.83 a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings came in at $6.81 a share. Analysts polled by FactSet had expected $6.73 a share.
Quarterly revenue rose 6.8% to $100.81 billion, below analyst forecasts for $101.6 billion.
The top line of UnitedHealthcare, the company's insurance and managed care business, rose 6.1% to $74.1 billion. Analysts had been looking for $75.22 billion. Revenue from Optum, its health-care-services business, jumped 9.4% to $65.1 billion, below estimates for $65.71 billion.
The stock, a bellwether for the health-care sector, slid 4% to $520.02 in premarket trading.
The company's medical-care ratio, or the share of premiums spent on patient care, was 85.5% for the full year, up from 83.2% in 2023 due to Medicare funding reductions, changes in the mix of members and the timing of Medicaid redeterminations.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
January 16, 2025 06:30 ET (11:30 GMT)
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