United Healthcare [$UNH] issued a press release on its quarterly results before the market opened with the following headlines:
![](http://midgardfinance.com/companies/U/UNH/logo.png)
- Total Revenues of $60.4 Billion Grew by 7% or $3.8 Billion Year-over-Year
- Operating Earnings Grew 9% to $5.0 Billion, Including Double-Digit Growth Rates in Each Optum Business
- Net Earnings Per Share were $3.67, Adjusted Net Earnings Per Share were $3.88, Bringing Year-To-Date Growth to 17%
- Cash Flows from Operations were $3.2 Billion in the Quarter, Bringing Year-To-Date Cash Flows from Operations to $12.3 Billion or 1.2x Net Income
The share price went from $220.59 to a closing price of $238.59 (+8.2%) following the earnings release and comments by the CEO David Wichmann and the CFO John Rex during the earnings call.
“Based on this year’s year-to-date performance, we have increased our outlook for full year 2019 adjusted earnings to a range of $14.90 to $15.00 per share.”
“Our strong year-to-date results lead us to raise our full year 2019 outlook for adjusted earnings to a range of $14.90 to $15.00 per share, at the mid-point an increase of $0.40 per share from the initial outlook we provided late last year.”
Financials
The figures below summarise the increasing revenue and operating income in each of the operating segments.
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_1revenue.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_2operating.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_3expenses.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_4segmentsrevenue.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_5segmentsincome.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_6segmentsmargins.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_7uhrevenue.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_8optumrevenue.png)
![](http://midgardfinance.com/companies/U/UNH/UNH2019Q3_9peopleserved.png)
Sector comparison
UnitedHealth has the best margins in the industry, but the multiples are also higher as a consequence. The recent pullback provided an entry option at somewhat lower multiples, but the share price growth has mostly been fuelled by expansion of multiples in recent years.
![](https://www.midgardfinance.com/plot/fundamentals/_/UNH_grossMargin_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/fundamentals/_/UNH_operatingMarginPBM_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/fundamentals/_/UNH_netMargin_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/fundamentals/_/UNH_revenue_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/fundamentals/_/UNH_netIncome_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/price/_/UNH_ps_2010-01-01.png)
Media coverage
Reuters – UnitedHealth sees 2020 profit above Street target; shares climb 8%
Bloomberg – Health Insurers Gain Most Since 2013 as Medical Cost Fears Ease