May 30, 2023
UNH Earnings Preview | Q1 2023
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UNH Earnings Preview | Q1 2023

UnitedHealth Group Incorporated (UNH) is due to release Q1 2023 earnings report on Friday, April 14, before the market opens. Due to the nature of business, UNH has managed to preserve its growing conditions, as the company offers healthcare benefits worldwide. 

On January 13, 2023, UNH reported its 2022 fourth-quarter earnings. The healthcare conglomerate reported $5.34 EPS, beating the consensus estimate, with a revenue of $82.79 billion for the same quarter, higher than analysts’ estimates of $82.53 billion and 12.3% higher than the same quarter year before. The company’s annual EPS came at $21.19 with a price-to-earnings ratio of 24.6. For this quarter (Q1 2023), the consensus estimate for revenue is 89.71B and $6.17 earnings per share for shareholders. The 2023-year EPS estimate also is $28.22. The Zacks Consensus Estimate for first-quarter earnings per share of $6.25 suggests a 13.8% increase from the prior-year figure of $5.49. The consensus mark has remained stable over the past week. It is worth noting that UnitedHealth beat the consensus estimate for earnings in all the prior four quarters, with the average being 4.4%.

What to watch in the report? 

– Insurance business: As one of the most important lines of income, we have to observe the changes in total membership. The market expects double-digit steady sales growth, which means increasing membership.

– Optum Health: UnitedHealth Group has two distinct business platforms: Optum and UnitedHealthcare. Through Optum, UNH provides care with local medical groups’ cooperation. This segment has seen substantial growth over the recent quarters, which is expected to continue. Recently published reports confirmed that solid growth in the Optum Health business could raise the company’s value-based arrangements, including at-home services.

– Annual and quarterly Outlooks: As much as the report is crucial, the company outlook for the coming quarter and years will also be important for investors to see where they will put their money. 

The overall outlook is positive, while from the technical point of view also, above $460, the trend is positive. 50-period Moving average at $512 is the first support, and then $500. Breaching under the second support will open the doors for $460. On the positive side, which is the overall outlook and confirmed by Renko blocks and MACD indicators as well, holding above $500, can put the $550 in the spotlight for the second quarter target.  

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