UnitedHealth hikes profit forecast after big 2Q
UnitedHealth raised profit expectations for the year after second-quarter earnings climbed almost 13%, and the nation's largest health insurer continued expanding beyond its core business and into care delivery.
A nearly 12% jump in revenue from the company's pharmacy benefit management operation helped UnitedHealth beat
UnitedHealth runs one of the nation's largest pharmacy benefit managers in
Earnings from the still-larger health insurance side also grew 12%, helped by gains from the company's Medicare and retirement business.
Jefferies analyst
Overall, UnitedHealth earned
Revenue grew 8% to
Analysts expect full-year earnings of
UnitedHealth's insurance business covers nearly 50 million people internationally and still brings in most of the company's revenue. But UnitedHealth also has been feeding Optum with acquisitions as the company adjusts to a big shift in how care is delivered and covered.
Insurers and employers that provide coverage are pushing deeper into managing or providing patient care in order to cut costs and make sure people are getting good care. They're focusing more on maintaining health, especially for patients with chronic conditions, instead of waiting to pay claims once someone becomes sick.
More than a year ago, UnitedHealth announced a
Shares of UnitedHealth, a component of the Dow Jones Industrial Average, slid 2% to
The stock has had an uncharacteristically bumpy journey this year. It slumped earlier this year amid worries about government scrutiny of drug pricing and Democratic presidential candidate calls for a "Medicare for All" plan that could replace private coverage. But shares rallied this month after President
With sentiment on managed care companies still cautious, UnitedHealth's second quarter results should be seen as satisfactory, said Windley, the Jefferies analyst.
Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a
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