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By Senad Karaahmetovic
UnitedHealth Group (NYSE:UNH) reported better-than-expected results for its fourth quarter, still, shares trade about 1% lower in pre-market Friday.
UNH delivered EPS of $5.34 on revenue of $82.8 billion, better than the consensus of $5.18 on sales of $82.47B. Revenue increased by 12% year-over-year, driven by a 27% and 35% increase in revenue coming from OptumHealth and OptumInsight business units, respectively.
Medical care ratio (MCR) stood at 82.8%, down 90bps from a year-ago, and somewhere in line with the consensus. For FY2022, MCR came in at 82%.
UNH also reaffirmed the 2023 guidance it shared at its November 29th Investor Conference. It continues to see revenue in the range of $357-360B and adjusted EPS of $24.40-24.90.
Goldman Sachs analysts said the Q4 beat was driven by higher net investment income.
"With the outlook for 2023 unchanged, we think the next catalyst for UNH (and the broader group) will be the 2024 MA rate notice and RADV final rule in the coming weeks," the analysts wrote in a note.
Cowen analysts commented:
"The stock is down 7% YTD; but with rotation, AN & RADV looming, we don't expect a significant relief trade today."
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