On Thursday, Shares of UnitedHealth Group Inc (NYSE:UNH), declined -1.57% to $120.15. The stock is up 16.82% in this year through last close, and the beta ratio has a value of 0.61. The stock, as of recent close, has shown weekly upbeat performance of 3.51% which was maintained at 0.1% in 1-month period, as UnitedHealth Group Reports Third Quarter Results.
According to detailed report, UnitedHealth Group (UNH) stated third quarter results, highlighted by ongoing, strong diversified growth.
- Third Quarter Revenues Grew 27% Year-Over-Year to $41.5 Billion
- UnitedHealthcare Grew to Serve 1.7 Million More People Domestically in the Past Year, Counting 290,000 People in the Third Quarter
- Optum Revenues Grew to $19.3 Billion; Optum Operating Earnings Raised 32%
- Third Quarter Net Earnings Were $1.65 Per Share; Cash Flows From Operations Were $2.8 Billion
Merged year-to-date results reflected continued steady growth and balanced performance across the Company. Revenues for the nine months ended September 30, 2015 grew 17 percent year-over-year to $113.5 billion, net earnings to common shareholders grew 12 percent to $4.6 billion and cash flows from operations were $6.2 billion, surpassing net earnings by $1.6 billion. UnitedHealthcare and Optum each produced double digit percentage improvements in revenues and earnings from operations over the nine-month period. The Company continues to project 2015 net earnings in a range of $6.25 to $6.35 per share, and cash flows from operations of $8.4 billion to $8.6 billion.
“Our 2015 results are reflecting balanced growth across a diversity of businesses and product categories. We believe this growth will continue because we are serving people more effectively, simplifying their health care experiences, and offering practical innovations that assist deliver more value to the consumer and the health care system as a whole,” said Stephen J. Hemsley, chief executive officer of UnitedHealth Group.
- The third quarter 2015 operating cost ratio of 15.2 percent improved 140 basis points year-over-year due to shifts in business mix and improvements in productivity.
- The third quarter 2015 tax rate of 42.0 percent raised 20 basis points year-over-year due to higher levels of nondeductible ACA fees.
- Third quarter 2015 days claims payable of 50 days raised 2 days sequentially and by 1 day year-over-year; days sales outstanding of 15 days were compriseent with second quarter.
- The Company’s balance sheet remained strong, with a debt to total capital ratio of 49 percent at September 30, 2015, contrast to 35 percent at June 30, 2015, due to the issuance of debt to fund the Catamaran acquisition in July 2015. Third quarter 2015 return on equity was 19.3 percent.
- UnitedHealth Group repurchased $177 million in stock in the third quarter, bringing year-to-date repurchases to more than 10 million shares for $1.1 billion. As formerly revealed, the Company has moderated its repurchase activity in connection with the Catamaran acquisition.
UnitedHealth Group (UNH) is a diversified health and well-being company dedicated to assisting people live healthier lives and assisting to make the health system work better for everyone.
- UnitedHealthcare’s third quarter 2015 revenues of $32.8 billion grew $2.8 billion or 9 percent year-over-year, with 12 percent growth in domestic revenues. The number of people served across the U.S. medical benefits markets grew by 1.7 million year-over-year, all organically, with balanced growth across commercial, Medicare and Medicaid offerings. In the third quarter of 2015, UnitedHealthcare grew to serve 290,000 additional people domestically.
- Third quarter 2015 earnings from operations for UnitedHealthcare of $1.9 billion reduced from the third quarter of 2014, with an operating margin of 5.7 percent, reflecting lower levels of reserve development, in addition to the performance of public exchange products and raised investments in and medical costs resulting from advancing Medicare Stars performance.
UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company’s UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services.
