UnitedHealth (UNH, Financial) reported third-quarter earnings that beat expectations, but the company has lowered the upper range of its full-year guidance due to rising medical costs and intensified impacts from a cyberattack. The company now anticipates its 2024 adjusted earnings per share to be between $27.50 and $27.75, down from the previous forecast of $27.50 to $28.00. This revised guidance midpoint falls below analysts' average expectations.
In pre-market trading, UnitedHealth shares fell 3.53%, priced at $584.00. For the third quarter, the company posted revenues of $100.8 billion, marking a 9.1% increase year-over-year, surpassing market predictions of $99.2 billion. Adjusted earnings per share came in at $7.15, beating analysts' average forecast of $6.99.
The medical loss ratio, a key indicator of patient care spending, was 85.2%, lower than Wall Street's expectations, attributed to pressures within the U.S. Medicare program for seniors. The days of claims payable stood at 47.4, compared to 45.2 in the second quarter of 2024 and 50.7 in the third quarter of 2023.
U.S. health insurers are grappling with unexpected increases in medical costs and reduced government program spending, with UnitedHealth leading the sector as a performance indicator by being the first to report earnings. The new earnings guidance reflects the larger-than-expected impact of a severe hacking incident on its healthcare transformation division, with some crisis management costs excluded from the adjusted results.
