UnitedHealth Group second quarter earnings surge 30 percent

July 18--UnitedHealth Group released financial results Tuesday that beat profit estimates and prompted the company to boost earnings guidance for a second consecutive quarter.

The Minnetonka-based company reported faster growth in the second quarter from its Optum division for health care services than its core business selling coverage as the nation's largest health insurer.

Even so, the company's UnitedHealthcare insurance business continued to benefit from a scaled back presence on health insurance exchanges launched under the federal Affordable Care Act (ACA), which were a source of red ink last year.

In the second quarter, UnitedHealth Group posted earnings of $2.4 billion on $50.05 billion in revenue after adjusting for one-time factors. Adjusted earnings per share of $2.46 beat analyst estimates by 8 cents. The second quarter earnings jumped by 30 percent.

UnitedHealth Group now expects adjusted net earnings of $9.75 to $9.90 per share for the year, up from the previous range of $9.65 to $9.85 per share.

UnitedHealth Group is the first major health insurer to release second quarter earnings. The announcement comes as Republicans in the U.S. Senate apparently have failed to come up with votes needed to deliver on campaign promises to repeal and replace the ACA.

While UnitedHealthcare has pulled back from the health law's individual market exchanges, which serve self-employed people and those who don't get coverage from an employer or the government, the company is still a large operator of Medicaid health plans. Eligibility in the Medicaid program expanded under the ACA, and would face likely cuts under the Repulican plan.

Twitter: @chrissnowbeck

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