From Nasdaq:

United Healthcare and Bank of America reported disappointing Q4 earnings, causing a significant drop in premarket trading. UNH beat consensus forecasts but still saw a 3% dip as underlying costs increased. Meanwhile, BAC missed on both EPS and revenue due to a weak trading quarter. Neither company’s performance reflects the overall Q4 earnings picture.

UNH paid out $5.46 billion in profit, with 85% of premiums going to medical costs. The company faces challenges with rising costs from providers and drug companies, particularly in the Medicare Advantage area, where UNH failed to meet expectations.

BAC’s earnings per share of $0.70 beat forecasts of $0.53, but the report was considered a disappointment due to complex charges and a weak trading quarter. However, the issues are seen as temporary by nature, and the drop in stock is viewed as a potential buying opportunity.

Despite these disappointments, UNH and BAC’s performance does not have a significant impact on the overall market. UNH’s ongoing issues will require an adjustment to future expectations, while BAC’s challenges are viewed as more of a one-off event.



Read more: What to Understand About United Healthcare (UNH) and Bank of America (BAC) Earnings Results