UnitedHealth Group Issued 2025 Guidance Ahead Of Now Stopped Investor Conference
On Tuesday, UnitedHealth Group (NYSE:UNH) introduced its 2025 outlook ahead of its Investor Conference on Wednesday, which had to be stopped abruptly. The company’s insurance division, United Healthcare’s CEO Brian Thompson, was fatally shot in a reportedly targeted attack.
The healthcare giant expects 2025 sales of $450 billion-$455 billion, exceeding the consensus of $431.397 billion.
The guidance includes Optum sales of $277 billion-$280 billion and UnitedHealthcare sales of $337 billion-$340 billion.
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The company expects net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share.
According to October’s SEC filing, the company anticipated diluted earnings per share at the upper end of a range of approximately $28.75 for 2025. Adjusted net earnings per share of $30.00 excludes amortization expense of approximately $1.65 per share and the related tax impacts of $0.40 per share.
Cash flows from operations for 2025 are expected to range from $32 billion to $33 billion.
As announced in the third quarter earnings release, UnitedHealth 2024 net earnings are expected to be $15.50 to $15.75 per share and adjusted net earnings $27.50 to $27.75 per share.
For 2025, the company expects a Medical Care Ratio of 86.5% ± 50 bps, with an Operating Cost Ratio of 12.5% ± 50 bps.
The company expects the number of consumers served to be 50.97 million-51.32 million, including 8.4 million-8.45 on Medicare Advantage and 7.675 million–7.775 million on Medicaid.
Last month, the Justice Department sued to block UnitedHealth’s $3.3 billion purchase of healthcare services company Amedisys, citing concerns about competition in the home health services market.
UnitedHealth’s Optum unit launched a website that aims to highlight the benefits of the combination. The website notes that the home healthcare industry remains highly fragmented despite the growing market.
Price Action: UNH stock is up 2.63% at $621.12 at last check Wednesday.
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