Latest news with #UnitedHealthGroupInc
CBS News
29-07-2025
- Business
- CBS News
UnitedHealth falls short of 2Q expectations, offers weak outlook for 2025
UnitedHealth delivered disappointing second-quarter earnings and went conservative with its 2025 forecast as soaring medical costs continue to swamp insurers. The health care giant said Tuesday that expenses that have jumped beyond what it expected when it set coverage prices will continue to pressure its performance. But the company expects a return to earnings growth in 2026. UnitedHealth now expects adjusted earnings of at least $16 per share in 2025 after withdrawing its previous forecast in May. It had started 2025 with expectations of making up to $30 per share. For the full year, analysts forecast earnings of $20.64 per share, according to the data firm FactSet. UnitedHealth Group Inc. runs one of the nation's largest health insurance and pharmacy benefits management businesses. The Eden Prairie, Minnesota, company also operates a growing Optum business that provides care and technology support. In May, the company withdrew its 2025 forecast due to higher-than-expected medical costs, and CEO Andrew Witty departed the company abruptly. He was replaced by Chairman Stephen Hemsley, who was the UnitedHealth CEO for more than a decade until 2017. That came after the company took the rare step in April of cutting its forecast. That pushed UnitedHealth shares down $130 in its worst single-day performance in over 25 years. Hemsley promised in June that UnitedHealth would establish a "prudent" 2025 earnings outlook when it detailed second-quarter results. He also said the company had underestimated care activity and cost trends, but improvements were being made. In the second quarter, UnitedHealth reported adjusted earnings of $4.08 per share on $111.6 billion in total revenue. Analysts expected earnings of $4.48 per share on $111.5 billion in revenue, according to FactSet. The company's profit fell 19% to $3.41 billion even as revenue rose 13%. Medical costs, the company's biggest operating expense, jumped 20% to $78.6 billion in the quarter. UnitedHealth is normally the first insurer to report earnings every quarter. But this summer, it followed competitors like Elevance Health Inc. and Centene Corp. that have lowered their annual forecasts and delivered disappointing results. Several insurers say they have been hit by medical costs that are growing faster than expected. Companies have seen a rise in expensive emergency room visits and growing prescription drug costs, especially from expensive cancer treatments and gene therapy. They've also seen a rise in behavioral health care, which includes the treatment of mental health conditions and substance use disorders. UnitedHealth shares slid by more than 3% to $272.30 before the opening bell on Tuesday. That price topped $630 last November to reach a new all-time high. But the stock has mostly shed value since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his way to the company's annual investor meeting. Shares are down 44% so far this year. The Dow Jones Industrial Average, of which UnitedHealth is a member, has climbed 5%.
Boston Globe
24-07-2025
- Business
- Boston Globe
UnitedHealth says it is under a federal investigation and cooperating
Earlier this year, The Wall Street Journal said federal officials had launched a civil fraud investigation into how the company records diagnoses that lead to extra payments for its Medicare Advantage, or MA, plans. Those are privately run versions of the government's Medicare coverage program mostly for people ages 65 and over. The company's UnitedHealthcare business covers more than 8 million people as the nation's largest provider of Medicare Advantage plans. The business has been under pressure in recent quarters due to rising care use and rate cuts. Advertisement UnitedHealth Group Inc. said in February that it wasn't aware of the start of any new activity as the paper reported. The company said Thursday that it reached out to the Justice Department 'after reviewing media reports about investigations into certain aspects of the company's participation in the Medicare program.' UnitedHealth runs one of the nation's largest health insurance and pharmacy benefits management businesses. It also operates a growing Optum business that provides care and technology support. Company shares have mostly shed value since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his way to the company's annual investor meeting. Advertisement The stock price dropped 3%, or $9.63, to $283 shortly before markets opened Thursday.
Yahoo
11-06-2025
- Business
- Yahoo
How One Big Stock is Dragging Down the Dow in 2025
It's been a sluggish year for the Dow Jones Industrial Average compared to the broader market. As of early June, the SPDR Dow Jones Industrial Average ETF Trust (DIA) is up just over 1%, trailing the Vanguard S&P 500 ETF (VOO), which has gained nearly 3%. The reason for the underperformance is, in large part, a single stock. UnitedHealth Group Inc. (UNH) has shaved roughly three percentage points off the Dow's year-to-date return. No other stock in the 30-member index has contributed more than 0.9 percentage points in either direction. Shares of UnitedHealth have been pummeled in 2025, falling more than 40% year to date due to concerns around Medicare Advantage margins and regulatory pressures—issues we've covered in depth previously. That sharp decline has been especially painful for the Dow, a price-weighted index. Unlike the market-cap-weighted S&P 500, the Dow gives more influence to companies with higher share prices. At the start of the year, UnitedHealth was trading around $500 per share, making it the second-largest holding in DIA with nearly an 8% weight. Now, with the stock hovering closer to $300, its weight has declined but remains substantial at about 4.4%, making it the ETF's eighth-largest position. The drop illustrates how the Dow's price-weighting methodology can amplify the impact of high-priced stocks, for better or worse. Still, the damage is surprisingly contained. Despite the collapse of one of its biggest components, DIA is lagging VOO by only about two percentage points. That speaks to the index's sector diversification and the resilience of its blue-chip constituents. For all its quirks—including a relatively small roster of 30 stocks and price-based weighting—the Dow remains an interesting gauge of large-cap U.S. companies. This year's performance is a reminder that even in a concentrated portfolio, diversification across industries and solid fundamentals can help soften the blow from an individual stock | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Wolfe Research Sees Margin Recovery As Key Catalyst for Unitedhealth (UNH)
Despite the company's recent setbacks, Wolfe Research analyst Justin Lake reiterated his bullish view on UnitedHealth Group Inc. (NYSE:UNH). While maintaining his Outperform rating, he lowered his price target to $390 from $501, driven by downward revisions of his earnings estimates as the company withdrew guidance. The analyst believes that a potential improvement in OptumCare's physician capitation business margin can substantially support earnings and overall growth. As per him, the stabilization and better performance at Optum Health will remain a key catalyst for share prices. He also hopes for a margin improvement in the Medicare Advantage business, which should improve overall financial stability. A successful healthcare provider smiling confidently in a modern hospital facility. The company has recently been reeling under several headwinds, including the abrupt resignation of the CEO and withdrawal of guidance. These issues were further exacerbated by The Guardian's May 21 investigative article, which alleged that the company secretly paid nursing homes to reduce hospitalizations and thus saved millions in costs. However, the company has categorically denied these allegations. According to them, the U.S. Department of Justice already conducted multi-year investigations and finally declined to pursue the matter. UnitedHealth Group Inc. (NYSE:UNH) is one of the largest health care companies in the world. It provides health insurance and healthcare solutions in the U.S. and globally under the UnitedHealthcare and Optum brands. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
22-05-2025
- Business
- Yahoo
JP Morgan Keeps Faith in UnitedHealth (UNH) Amid Regulatory Reviews
On May 22, JP Morgan analyst Lisa Gill reiterated her optimistic view on UnitedHealth Group Inc. (NYSE:UNH) despite the recent issues, including the allegations made in a report by The Guardian. On May 21, after the market closed, the Centers for Medicare and Medicaid Services (CMS) announced an expansion of its risk adjustment data validation (RADV) audits for Medicare Advantage plans. The analyst noted that it is difficult to gauge the financial impact of the expanded audits at this stage. However, she believes that large-cap insurers such as UnitedHealth Group, Humana Inc. (NYSE:HUM), and CVS Health Corp. (NYSE:CVS) have significant exposure within managed care. Despite these developments, the analyst remained confident in UnitedHealth Group stock. While expecting the CMS audit to continue, she suggests investors should wait for UnitedHealth's response, as the process is in the early stages. She also warned against factoring in any impact on company earnings as of now. The analyst has a Buy rating on the stock with a price target of $405. UnitedHealth Group Inc. (NYSE:UNH) is one of the largest health care companies in the world. It provides health insurance and healthcare solutions in the U.S. and globally under the UnitedHealthcare and Optum brands. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
