March 26, 2023
UnitedHealth Group Earnings Preview | Q3 2022
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UnitedHealth Group Earnings Preview | Q3 2022

UnitedHealth Group will publish its Q3 2022 earnings report on Friday, October 14th, before the market opens. The Zacks Consensus Estimate for UNH’s third-quarter earnings per share (EPS) is pegged at $5.45, which indicates an improvement of 20.6% from the same quarter of last year. The consensus estimated revenue also stands at $80.7 billion, equal to an 11.6% annual gain. 

Signs signal more growth even if it doesn’t happen right away

Last Quarter Review

In Q2 2022 report which was published on July 15th, UnitedHealth Group reported $5.57 earnings per share (EPS) for the quarter, more than analysts’ consensus estimates of $5.24 by $0.33. The UNH revenue of $80.33 billion for the second quarter also was more than analysts’ consensus expectations of $79.68 billion, and 12.6% more than the same quarter last year. UnitedHealth Group has generated $19.15 earnings per share over 2021, and for 2022, market estimates of $24.74 Earnings per share. 

What do we have to watch in the report?

UnitedHealth Group (NYSE: UNH) subsidiary Optum officially closed its $13 billion purchase of Nashville-based Change Healthcare on Monday, October 10, according to the US Securities and Exchange Commission filings. This deal means that the company will be able to improve its technology, especially in streamlining its administrative and payment process sections. UNH’s two businesses — UnitedHealthcare and Optum — continued solid performances to lift its overall quarterly performance. However, thanks to membership growth on well-devised Medicare and Medicaid plans that UNH distributes through the UnitedHealthcare business, the company’s revenues will likely benefit from higher premiums in the third quarter. On the other hand, because of its investments to boost capabilities, company revenue could be under pressure. 

However, the Zacks Consensus Estimate for total premiums of UnitedHealth Group is pegged at $63.9 billion, indicating 12.2% annual growth compared with the same quarter of last year and $3.6 billion operating income, which indicates a rise of 18.6% from the prior-year quarter’s reported figure, raise hopes for a positive outcome. 

From the technical point of view, as you can see in the below figure of its Daily chart, its overall uptrend losing steam, but still holding itself in a weak uptrend. First support sits at $490, and breaching under that can lower the prices to around $450, but lower than that level, can happen only if we face another crisis, otherwise from both technical and fundamental points of view, the asset seems so strong above this level. 

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