From Nasdaq: 2025-04-14 07:25:00

UnitedHealth Group Incorporated (UNH) will report first-quarter 2025 results on April 17, 2025, with an estimated earnings of $7.27 per share on revenues of $111.01 billion. Estimates have remained stable, with a projected 5.2% increase in earnings and 11.2% growth in revenues year-over-year. UNH has a history of surpassing earnings estimates, with an average surprise of 2.5%.

The first-quarter results for UNH are expected to benefit from higher premiums due to an expansion of its domestic commercial membership base. Premium revenues are estimated to grow by 11.5% year-over-year, with contributions from Optum Health and UnitedHealthcare divisions supporting premium growth. Service revenues from the Optum brand are also expected to contribute to a nearly 10% increase in top-line performance.

However, the company’s operating costs are expected to increase by 8.6% from the prior year, impacting the medical care ratio and overall expenses. Despite this, UNH’s stock has outperformed the industry, with a 18.5% YTD increase. The company’s valuation is slightly above the industry average, trading at 19.47X forward 12 months earnings. UNH remains a compelling long-term investment, with a projected annual earnings growth of 12.4% over the next five years.

UnitedHealth’s strategic investments in technology and value-based care position the company for continued success. The approval of a 5.06% increase in Medicare Advantage payments for fiscal 2026 is expected to boost profitability. The company’s focus on managing costs effectively and improving patient outcomes supports its growth trajectory. Investors may consider adding to their positions given UNH’s strong fundamentals and growth outlook.



Read more at Nasdaq: How Should You Play UnitedHealth Stock Going Into Q1 Earnings?