Shares of UnitedHealth Group Inc. (UNH) slipped 0.2% in premarket trading Wednesday, after the health care company reported a second-quarter profit that rose well above expectations, but revenue that came up short, as premiums and services revenue missed. Net income rose to $6.64 billion, or $6.91 a share, from $3.29 billion, or $3.42 a share, in the year-ago period, amid "unprecedented, temporary" deferral of care in the risk-based businesses. Excluding non-recurring items, adjusted earnings per share rose to $7.12 from $3.60, beating the FactSet consensus of $5.28. Total revenue grew 2.5% to $62.14 billion, but was below the FactSet consensus of $63.48 billion. Premiums revenue rose 4.7% to $49.39 billion to miss the FactSet consensus of $50.05 billion; products revenue fell 1.3% to $8.25 billion, but topped expectations of $8.08 billion; and services revenue dropped 7.6% to $4.16 billion, missing expectations of $4.99 billion. The company affirmed its 2020 adjusted EPS guidance range of $16.25 to $16.55. "As the [COVID-19] pandemic advanced, access to and demand for care was most constrained from mid-March through April, began to recover in May and approached more typical levels by the end of the second quarter," the company said in a statement. The stock has climbed 9.5% over the past three months through Tuesday, while the Dow Jones Industrial Average has rallied 11.2%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 15, 2020 06:14 ET (10:14 GMT)
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