UnitedHealth jumps after profit beats Wall Street targets

Earnings report reflects only 'minimal impact' from COVID-19 pandemic

Get all the latest news on coronavirus and more delivered daily to your inbox.  Sign up here.

Continue Reading Below

Shares of UnitedHealth Group Inc. rose 2.0% in premarket trading Wednesday, after the health care services company reported first-quarter profit and revenue that beat expectations, with results reflecting a "minimal impact" from the COVID-19 pandemic, given that various factors only emerged late in the quarter.

Net income fell to $3.47 billion, or $3.52 a share, from $3.47 billion, or $3.56 a share, in the year-ago period.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Excluding non-recurring items, adjusted earnings per share slipped to $3.72 from $3.73 but beat the FactSet consensus of $3.63. Revenue grew 6.7% to $64.42 billion, above the FactSet consensus of $64.22 billion.

TickerSecurityLastChangeChange %
UNHUNITEDHEALTH GROUP INCORPORATED303.97+0.20+0.07%
XLVHEALTH CARE SELECT SECTOR SPDR ETF101.78+1.31+1.30%

Premiums rose 6.6% to $50.64 billion, just shy of the FactSet consensus of $50.70 billion, while products revenue increased 4.4% to $8.43 billion to beat expectations of $7.76 billion. Services revenue rose 15.4% to $4.99 billion, just below expectations of $5.02 billion.

DON'T BUY THESE FALSE CORONAVIRUS TREATMENT CLAIMS, FTC WARNS

Among COVID-19-related factors that emerged late in the quarter were rising incidence and response initiatives and investment initiatives, including coverage expansions and increased access to critical care and pharmacy services.

The company affirmed its 2020 adjusted EPS outlook of $16.25 to $16.55, compared with the FactSet consensus of $16.21.

The stock has lost 8.7% over the past three months through Tuesday, while the SPDR Health Care Select Sector ETF has lost 6.6% and the Dow Jones Industrial Average has declined 17.5%.