UnitedHealth Group (NYSE: UNH) is scheduled to report third quarter 2019 earnings on Tuesday, October 15, before the market opens. Analysts forecast the company will report earnings of $3.75 per share on revenue of $59.7 billion. This compares to earnings of $3.41 per share on revenue of $56.5 billion reported in the prior-year period.
In the trailing four quarters, the company has consistently beat earnings estimates and this trend can be expected to continue in the to-be-reported quarter. The strength in the Medicare and Optum businesses is likely to continue in the third quarter while membership growth maintains its momentum.
The company is likely to benefit from its investments in growth initiatives and strategic acquisitions. The efficient management of medical costs is also likely to help the quarterly results. Investments in artificial intelligence and other technologies are gaining prominence in the health industry.
In the second quarter of 2019, UnitedHealth Group beat market expectations for earnings while revenues were in line with estimates. Total revenues grew 8% year-over-year to $60.6 billion and adjusted EPS improved by 15% to $3.60. Revenue results were driven by double-digit growth at UnitedHealthcare Medicare & Retirement, OptumRx and OptumHealth. Revenues grew 6% in the UnitedHealthcare segment and 13% in the Optum segment.
For fiscal year
2019, UnitedHealth expects GAAP EPS of $13.95-14.15 and adjusted EPS of
Shares of UnitedHealth have fallen over 10% year-to-date. However, the majority of analysts have rated the stock as Buy and it has an average price target of $290.62.