1310 ET - UnitedHealth Group tumbles after it substantially downgraded projected results for 2025, citing its Medicare business. Mizuho analysts say, however, they're not convinced baseline utilization trends are accelerating worse than investor expectations and that UNH's issues could be more company-specific than a warning for the industry. They believe the healthcare company's guidance reduction is based on meaningful margin deterioration in OptumHealth and medical loss ratio guidance that wasn't conservative enough for Medicare Advantage growth and mix, among other reasons. "That being said, we do not believe the earnings call answered all investors' questions which could indicate a lack of clarity on UNH's part given it is still early in the year," say the analysts. UnitedHealth sinks 22% to $455.55. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
April 17, 2025 13:10 ET (17:10 GMT)
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