The unitedhealthcare signaling is displayed in an office building in Phoenix, Arizona, on July 19, 2023.
Patrick T. Fallon | AFP | Getty images
Unitedhealth Band On Tuesday, issued a perspective in 2025 which did not succeed in the expectations of Wall Street, while the company’s insurance unit continues to fight against higher medical costs.
Unitedhealth Group’s shares fell by more than 3% in pre-commercial exchanges on Tuesday.
The company plans to display a profit adjusted in 2025 at least $ 16 per share, with a turnover of $ 445.5 billion to $ 448 billion. Wall Street analysts expected an adjusted profit of $ 20,91 per share and a turnover of an annual year of $ 449.16 billion, according to consensual LSEG estimates.
The stock dropped in May after the company suspended these directives in 2025 Due to high medical expenses and announced the sudden departure of the former CEO Andrew Witty. Tuesday report adds A growing reverse chain For the company, which owns the largest and most powerful insurer in the country, Unitedhealthcare, and is often considered the Bellwether in the industry.
“Although we are faced with challenges in our business sectors, we believe that we can solve these problems and resume our growth potential while guaranteeing people that people have access to high -quality affordable health care,” said UNITEDHEALTHCARE CEO, TIM NOEL, in a press release.
The company provides that the medical care ratio of its insurance unit – a measure of the total of medical expenses paid compared to the bonuses collected – between 89% and 89.5%. A lower ratio generally indicates that a company has collected more premiums than it has paid into services, resulting in higher profitability.
For the second quarter, this ratio increased to 89.4%, against 85.1% during the annual period, mainly due to medical costs.
Unitedhealth Group’s report indicates that high medical costs in the Advantage Medicare plans may not happen soon for the wider sector of health insurance. Unitedhealthcare, the insurance branch of Unitedhealth Group, is the largest supplier in the country of these private health insurance plans.
Higher expenses in the Advantage Medicare plans have forced insurers in the past year, as more and more elderly people return to hospitals to undergo procedures that they had delayed during the COVVI-19 pandemic, such as joint and hip replacements.
Here is what Unitedhealth Group has reported for the second quarter compared to what Wall Street was waiting, on the basis of an investigation of LSEG analysts:
- Profit per share: $ 4.08 adjusted vs $ 4.48 expected
- Income: $ 111.62 billion against $ 111.52 billion expected
In particular, the report comes a few days after unitedhealth revealed that he respects Investigations from the Ministry of Justice on its Medicare billing practices.
He marks United First report on gains under a new CEOStephen Hemsley, who is responsible for restoring investors’ confidence and revolving around a company in difficulty that has continued to do a meticulous audience in recent months. Unitedhealth Group’s shares are down more than 44% for the year, partially fueled by DOJ surveys and its suspended perspectives.
The company 2024 was no better. He faced the murder of the CEO of Unitedhealthcare, Brian Thompson, the torrent of public return which followed and a historic cyberatthe which affected millions of Americans.
