UnitedHealth Group Reported better-than-expected revenue First quarter results On Tuesday, the company was still dealing with the fallout from a cyber attack on its subsidiary Change Healthcare.
Here’s what the company does:
- income: According to LSEG, the adjusted price of $6.91 per share may not compare with the $6.61 analysts expected.
- income: US$99.8 billion, compared with US$99.3 billion expected by LSEG.
UnitedHealth reported revenue growth of nearly 9% from $91.9 billion in the same period last year.
It took about $7 billion in charges in the quarter related to the sale of its Brazilian operations, according to the company freed Tuesday. UnitedHealth said the currency impact of sales in Brazil and the adverse impact of a cyberattack resulted in a net loss of $1.53 per share in the period.
UnitedHealth reported adjusted earnings per share of $6.91 for the quarter. The company said the adjusted figures did not include sales in Brazil, but that was only part of the impact of the cyber attack. It divides the impact of cyberattacks into two categories: “direct response” costs and “business interruption” costs.
Direct responses, such as UnitedHealth’s efforts to revive its Change Healthcare platform, had an impact of 49 cents per share in the quarter. Business interruption costs, such as lost revenue from Change Healthcare, totaled 25 cents per share. UnitedHealth Group said its adjusted profit figures included the impact of business interruptions but did not include direct response costs.
The company said the total impact of the cyberattack in the first quarter was 74 cents per share and it expects the full-year impact to be $1.15 to $1.35 per share.
UnitedHealth reported a first-quarter medical cost ratio (MCR), or the amount of each premium dollar spent on medical costs, of 84.3%. The company said this included a 40 basis point impact from the cyber attack. Analysts expected an MCR of 83.8%, according to StreetAccount. Lower ratios generally indicate higher profitability.
UnitedHealth shares rose more than 6% in premarket trading Tuesday. As of Monday’s close, the stock was down about 15% for the year.
UnitedHealth consists of two principal business units: Optum and UnitedHealthcare. Optum provides a range of pharmacy services, consulting services and healthcare services to approximately 103 million consumers. website.
Optum reported first-quarter revenue of $61.1 billion, up from $54.1 billion in the same period last year. UnitedHealth said Optum’s revenue growth was driven primarily by its patient care and pharmacy divisions due to “strong growth” in the number of people served.
In 2022, Optum completed a $13 billion merger with Change Healthcare, which provides payment and revenue cycle management tools. Change Healthcare processes more than 15 billion billing transactions annually, and one in three patient records passes through its system, according to the company.
UnitedHealth Disclosure in February Cyber threat actors compromised part of Change Healthcare’s information technology network, prompting the company to immediately disconnect affected systems. The impact has rippled throughout the health care industry, as many doctors are unable to dispense prescriptions or get paid for their services.
The company has been working to get its systems back online in recent weeks, and UnitedHealth said Tuesday it has advanced more than $6 billion to health care providers in need of assistance.
UnitedHealth said it continues to make “significant progress” in restoring services at Change Healthcare.
“The core story of UnitedHealth Group continues to be our colleagues delivering better experiences for the people we serve and driving balanced growth while responding quickly and effectively to transform health care,” UnitedHealth Group CEO Andrew Witty said in a press release. s attack.
UnitedHealthcare, another unit of UnitedHealth Group, provides insurance and benefits services to millions of Americans, according to its website. UnitedHealthcare reported first-quarter revenue of $75.4 billion, up from $70.5 billion in the same period last year.
The growth was driven by an increase in the number of people UnitedHealthcare serves in the United States, the company said.
UnitedHealth said it updated its full-year net profit forecast, expecting earnings per share to be between $17.60 and $18.20, mainly due to cyberattacks and sales in Brazil. The company maintained its forecast for adjusted net earnings per share of $27.50 to $28.
UnitedHealth will hold its quarterly conference call with investors at 8:45 a.m. ET on Tuesday.
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