UnitedHealth Earnings: UNH Stock Dips Despite Q2 Beat

UNH got a boost from nonoperating income

UnitedHealth earnings for the second quarter of 2019 have UNH stock falling, despite positive results.

UnitedHealth Earnings: UNH Stock Dips Despite Q2 Beat
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UnitedHealth (NYSE:UNH) reported earnings per share of $3.60 for the second quarter of the year. This is a roughly 15% increase over the company’s earnings per share of $3.14 from the same time last year. It also comes in well above Wall Street’s earnings per share estimate of $3.45 for the quarter, but UNH stock is still down today.

The UnitedHealth earnings report for the second quarter of 2019 also includes net income of $3.39 billion. This is better than the company’s net income of $3.01 billion reported in the second quarter of 2018.

Operating income reported in the UnitedHealth earnings release for the second quarter of the year comes in at $4.74 billion. Operating income from the same period of the year prior was $4.20 billion.

UnitedHealth earnings for the second quarter of 2019 has revenue coming in at $60.60 billion. That’s up from the company’s revenue of $56.09 billion reported in the second quarter of the previous year. This also has it beating analysts’ revenue estimate of $60.59 billion for the quarter, but it couldn’t stop UNH stock from falling.

So why exactly is this UnitedHealth earnings report not boosting UNH stock today? It looks like it has to do with how the company beat estimates. An unexpected increase in nonoperating income contributed to it beating estimates. This doesn’t have UNH shareholders stoked about the results.

UNH stock was down 2% as of noon Thursday, but is up 9% year-to-date.

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/2019/07/unitedhealth-earnings-hits-unh-stock/.

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