UnitedHealth books better-than-expected fourth-quarter profit
UnitedHealth posted a better-than-expected profit in the final quarter of 2024, but revenue fell short as challenges like Medicare funding cuts and a Medicaid enrollment drop hurt
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.UnitedHealth posted a better-than-expected profit in the final quarter of 2024, but revenue fell short as challenges like Medicare funding cuts and a Medicaid enrollment drop hurt.
Shares of the health care giant slid early Thursday after it released its first financial report since the brazen shooting of one of its executives outside a New York City hotel touched a national nerve and brought to the surface American frustration over health care access.
UnitedHealth earned $5.5 billion in the quarter, as adjusted results totaled $6.81 per share. The company's revenue climbed about 7% to $100.8 billion.
Analysts expected earnings of $6.73 per share in the fourth quarter on $101.6 billion in revenue, according to the data firm FactSet.
UnitedHealth operates the nation’s largest health insurer, UnitedHealthcare, which covers more than 49 million people in the United States. It also operates a large pharmacy benefit manager that runs prescription drug coverage and a growing business that delivers care and provides technical support.
UnitedHealth’s Medicaid enrollment tumbled by about 400,000 people compared to the previous year’s quarter, as states went through a lengthy process to determine who was still eligible for the government program after the COVID-19 pandemic.
The company says it also dealt with increased prescribing of expensive specialty drugs and other cost pressures.
The company on Thursday also reaffirmed a forecast it laid last month for 2025 adjusted earnings ranging between $29.50 to $30 per share.
Analysts expect earnings per share of $29.83.
Company shares slid about 5% to $515 in premarket trading Thursday.