UnitedHealth Exceeds Q4 Profit Expectations, Reaff…
From Financial Modeling Prep: 2025-01-16 12:04:00
UnitedHealth Group (NYSE:UNH) exceeded expectations with fourth-quarter profits and reaffirmed its 2025 financial outlook. Despite facing criticism over healthcare affordability, CEO Andrew Witty emphasized the company’s dedication to expanding access to quality care. UnitedHealth projects revenues between $450 billion and $455 billion by 2025.
In the fourth quarter, UnitedHealth reported a 6.8% revenue increase to $100.81 billion, slightly below estimates. However, adjusted earnings per share of $6.81 surpassed expectations, showcasing strong profitability. The company, like others in the industry, faced higher costs in Medicare plans due to increased medical treatments post-pandemic.
UnitedHealth’s medical care ratio rose to 85.5% for the full year, up from 83.2% in 2023, indicating tighter margins. This increase was driven by Medicare funding reductions and changes in member mix. Despite these challenges, UnitedHealth remains optimistic about growth opportunities in the coming year.
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