UnitedHealth Stock Drops Despite Q2 Earnings Beat

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UnitedHealth (NYSE:UNH) stock was down on Tuesday despite reporting an earnings beat for the second quarter of 2018.

UnitedHealth Stock Drops Despite Q2 Earnings Beat

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UnitedHealth reported earnings per share of $3.14 for the second quarter of the year. This is an increase over the company’s earnings per share of $2.46 that was reported in the same period of the year prior. It also came in well above Wall Street’s earnings per share estimate of $3.04 for the quarter.

Net income reported by UnitedHealth for the second quarter of 2018 came in at $3.01 billion. This is better than the company’s net income of $2.35 billion that was reported in the second quarter of 2017.

During the second quarter of the year, UnitedHealth reported operating income of $4.20 billion. The health care company’s operating income from the same time last year came in at $3.73 billion.

UnitedHealth also reported revenue of $56.09 billion for the second quarter of 2018. This is up from its revenue of $50.05 billion that was reported in the second quarter of the previous year. It also matches analysts’ revenue estimate for the period.

UnitedHealth’s earnings report for the second quarter of the year was solid, but some analysts were still worried about its performance. Of note is the company’s consolidated Medical Loss Ratio, which was down 10 basis points during the quarter.

The company’s consolidated Medical Loss Ratio being down by 10 basis points is a small miss, but it raises concerns following a stronger first quarter of 2018. During the previous quarter, the company beat Medical Loss Ratio estimates by 30 basis points, reports TheStreet.com.

UNH stock was down 2% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/07/unitedhealth-stock-down-despite-earnings-beat/.

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