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UnitedHealth Group Inc. (UNH) Beats

UnitedHealth Group Inc. (NYSE:UNH) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), UnitedHealth Group met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share shrank.

Margins dropped across the board.

Revenue details
UnitedHealth Group Inc. (NYSE:UNH) logged revenue of $30.34 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $30.47 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter’s $27.28 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.16. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.14 per share. GAAP EPS of $1.16 for Q1 were 11% lower than the prior-year quarter’s $1.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.6%, 130 basis points worse than the prior-year quarter. Operating margin was 7.1%, 140 basis points worse than the prior-year quarter. Net margin was 3.9%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter’s average estimate for revenue is $30.82 billion. On the bottom line, the average EPS estimate is $1.30.

Next year’s average estimate for revenue is $123.73 billion. The average EPS estimate is $5.52.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,317 members out of 3,472 rating the stock outperform, and 155 members rating it underperform. Among 1,021 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,005 give UnitedHealth Group Inc. (NYSE:UNH) a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UnitedHealth Group Inc. (NYSE:UNH) is buy, with an average price target of $65.92.

The article UnitedHealth Group Beats Analyst Estimates on EPS originally appeared on

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends UnitedHealth Group and recommends the following options:Long Jan 2014 $40 Calls on UnitedHealth Group.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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