Latest news with #profit forecast
Reuters
14 hours ago
- Business
- Reuters
UnitedHealth's downbeat annual forecast, quarterly profit miss hit shares
July 29 (Reuters) - UnitedHealth (UNH.N), opens new tab on Tuesday restored its full-year profit forecast that it suspended months ago, with a new outlook that highlighted the challenges the U.S. insurer faced, including rising medical costs. The company projected full-year earnings per share of at least $16, well short of analysts' lowered estimates, while second-quarter profit fell short of expectations. Its shares were trading about 5% down premarket, set to add to the more than 40% slump this year. UnitedHealth and other insurers have been hit hard this year by elevated medical costs. The company's underperformance led to the abrupt departure of CEO Andrew Witty in May. New CEO Stephen Hemsley is under pressure to regain investor trust amid company's financial issues and reputational damage. The company posted its first earnings miss in over a decade in the first quarter and is facing criminal and civil investigation by the U.S. Department of Justice over its Medicare Advantage billing practices. Morningstar analyst Julie Utterback said given the new outlook is roughly half of UnitedHealth's initial guidance for 2025, investors will be looking at management to allay fears over the longer-term earnings power of the business. UnitedHealth in December had initially forecast adjusted profit for 2025 to be between $29.50 and $30.00 per share. In 2024, its adjusted profit stood at $27.66 per share. The company said its new forecast reflects expectations for higher realized and anticipated care trends. The company suspended its 2025 forecast in May, a historic first for the insurer, citing higher-than-anticipated medical expenditures, which have also rattled its peers. The company's quarterly medical loss ratio - the percentage of premiums spent on medical care - stood at 89.4%, higher than analysts' expectation of 88.58%. The rise was mainly due to medical cost trends that significantly exceeded pricing trends, and the ongoing effects of Medicare funding reductions, UnitedHealth said. Still, the company remained optimistic and reiterated that it expects to return to profit growth in 2026. "While we face challenges across our lines of business, we believe we can resolve these issues and recapture our earnings growth potential," said Tim Noel, chief executive officer of the health insurance unit UnitedHealthcare. The company's adjusted second-quarter profit of $4.08 per share missed analysts' average estimate of $4.48.
Reuters
15 hours ago
- Business
- Reuters
UnitedHealth forecasts annual profit below estimates
July 29 (Reuters) - UnitedHealth on Tuesday reinstated full-year profit forecast that it pulled over two months ago, but its guidance fell short of analysts' already-lowered expectations, as the U.S. health insurer battles rising costs in its government-backed plans. The company (UNH.N), opens new tab, which has seen a series of setbacks this year, also missed Wall Street expectations for second-quarter earnings. The results show the scale of the challenges UnitedHealth's new CEO Stephen Hemsley is facing after being restored to the role in May following the abrupt resignation of incumbent Andrew Witty. Its shares fell 5% in premarket trading after the company said its new forecast reflects expectations for higher realized and anticipated care trends. UnitedHealth suspended its 2025 forecast in May, a historic first for the insurer, citing higher-than-anticipated medical expenditures, which have also rattled its peers. The company on Tuesday forecast annual profit of at least $16 per share, lower than its previous expectation of $26 to $26.50 per share. Analysts on average were expecting a profit of $20.91 per share, per LSEG data. The healthcare conglomerate reiterated that it expects to return to earnings growth in 2026. The company's adjusted second-quarter profit of $4.08 per share missed analysts' average estimate of $4.48.
Yahoo
22-07-2025
- Automotive
- Yahoo
Genuine Parts cuts annual profit view on as tariff uncertainty
(Reuters) -Genuine Parts Company cut its annual profit forecast on Tuesday due to tariff-related uncertainty, sending the shares of the auto parts distributor down nearly 1% before the bell. U.S. President Donald Trump's tariffs combined with inflationary headwinds are complicating the automotive industry as companies try to localize their supply chains. "We remain focused on what we can control as we proactively manage through an evolving external environment," CEO Will Stengel said. The Atlanta-based company cuts 2025 adjusted profit forecast to between $7.50 and $8.00 from $7.75 and $8.25. It also slashed its annual revenue growth to 1%-3% from its prior expectation of 2%-4%. The company's cost-saving measures has helped it offset rising operational expenses and challenges related to tighter inventory levels. It reported second-quarter revenue of $6.16 billion, above expectations of $6.12 billion, according to data compiled by LSEG. Genuine Parts reported a second-quarter adjusted net income of $255 million, or $2.10 per share, below analysts' estimate of $2.07 per share. Sign in to access your portfolio
Reuters
22-07-2025
- Business
- Reuters
Quest Diagnostics raises annual forecasts on strong diagnostic testing demand
July 22 (Reuters) - Laboratory operator Quest Diagnostics (DGX.N), opens new tab raised its 2025 profit and revenue forecasts on Tuesday, banking on robust demand for its diagnostic tests, sending the company's shares up over 3% in premarket trade. The company now expects adjusted profit for 2025 to range between $9.63 and $9.83 per share, compared with its previous forecast of $9.55 to $9.80 per share. Quest sees its annual revenue in the range of $10.80 billion to $10.92 billion, above its prior view of between $10.70 billion and $10.85 billion. Steady demand for non-urgent surgeries, particularly among older Americans, has driven increased demand for diagnostic checkups in recent quarters. Diagnostic service providers such as Quest and Labcorp (LH.N), opens new tab have also benefited from agreements to manage hospital laboratories as they seek to expand market share. Quest's CEO Jim Davis said the company "realized productivity gains as we continued to deploy automation and digital technologies across our operations." The company's quarterly sales rose 15.2% to $2.76 billion from a year ago, beating analysts' average estimate of $2.73 billion, according to data compiled by LSEG. Excluding one-off items, Quest posted a profit of $2.62 per share in the quarter ended June 30, above the average estimate of $2.57.
Reuters
22-07-2025
- Business
- Reuters
RTX cuts 2025 profit forecast as tariff costs weigh
July 22 (Reuters) - RTX (RTX.N), opens new tab cut its 2025 profit forecast on Tuesday, as the aerospace and defense giant took a hit from U.S. President Donald Trump's trade war despite strong demand for its engines and aftermarket services. Trump's imposition of tariffs on imports of aluminum and steel has shrouded the markets with uncertainty, threatening to add pressure on an already-strained supply chain. RTX had warned of an $850 million hit from the trade war, though it was based on the assumption that steel and aluminum tariffs remain at 25%, China tariffs remain at 145% and global reciprocal tariffs remain at 10%. Since then, levies on steel and aluminum have doubled to 50% and Trump has unveiled new tariffs on most trading partners, but those on China have significantly reduced. RTX now expects adjusted profit between $5.80 and $5.95 per share for 2025, down from its prior forecast of $6.00 and $6.15 per share. Maintenance and repair service providers for commercial aircraft have banked on a shortage of new jets, as production delays force airlines to operate an older, cost-intensive fleet. Demand in its defense business has remained strong in the face of growing geopolitical tensions around the world. RTX's Patriot air defense systems have been widely used on the battlefield in Ukraine to counter missile threats from Russia. Raytheon, RTX's defense unit, reported sales that rose 8% to $7 billion in the second quarter. The company raised its adjusted 2025 sales forecast to between $84.75 and $85.5 billion, from $83 billion to $84 billion. RTX's Pratt and Whitney unit, which produces engines for Airbus' A320neo jets and competes with CFM International, saw sales rise 12%. Pratt has struggled with output problems in recent years and is in the middle of an inspection drive for potentially flawed components in its geared turbofan engines that have grounded hundreds of planes in recent months. The Arlington, Virginia-based company reported a 9% rise in total revenue to $21.6 billion. Its adjusted per-share profit stood at $1.56 in the quarter, compared with $1.41 last year.
