UnitedHealth Q1 Earnings Tank 14%, Union Pacific Tops Estimates

UnitedHealth Q1 Earnings Tank 14%, Union Pacific Tops Estimates
<a href="https://pixabay.com/users/geralt/">geralt</a> / Pixabay

UnitedHealth Group Inc. (NYSE:UNH) and Union Pacific Corporation  (NYSE:UNP) announced their first quarter results today. Though the health insurer’s profits declined 14 percent, the railroad giant’s net income rose 11 percent in the same period.

UnitedHealth Q1 Earnings Tank 14%, Union Pacific Tops Estimates

UnitedHealth Group Inc. (NYSE:UNH)

Blue Mountain Credit Fund still in the red YTD; here are their biggest holdings

Blue MountainBlue Mountain Credit Alternatives Fund was up 0.36% for November, although the fund remains well into the red for the year. For the first 11 months, the fund was down 24.85% gross. Q3 2020 hedge fund letters, conferences and more Blue Mountain's fundamental credit strategy was up 0.63% for November, including a 1.09% gain for Read More

The country’s largest provider of Medicare Advantage Plans earned $1.19 billion or $1.16 per share in the first quarter, down from $1.39 billion or $1.31 a share in the same period of 2012. The Q1 2013 earnings figure doesn’t include a part of the profits that went to the Brazilian health care provider Amil Participacoes S.A. (PINK:AMPIY). UnitedHealth Group Inc. (NYSE:UNH) is in the process of acquiring the Brazilian company for $4.9 billion. However, revenues were up 11 percent to $30.34 billion. Wall Street analysts were expecting $30.54 billion in revenues and $1.14 in earnings.

The health insurer said the biggest reason of earnings drop was accounting adjustment due to leftover insurance claims. UnitedHealth Group Inc. (NYSE:UNH) had a $280 million gain because the claims left over from the past few quarters were lower than expected. The company had booked a gain of $530 million in the same period last year. Lower gains indicate that the actual claims were close to the company’s projections.

UnitedHealth Group Inc. (NYSE:UNH) said enrollments increased 18 percent during the March 31 ended quarter to 42 million people. The company witnessed growth in many categories and gained about 4 million customers from the Amil deal. However, medical costs rose 13 percent during the quarter to $22.57 billion.

The company lowered its revenue projections for the full year to $122 billion from the previous estimate of $123-$124 billion. Analysts expect UnitedHealth Group Inc. (NYSE:UNH) to report full year earnings of $5.51 a share with $123.83 billion in revenues.

UnitedHealth Group Inc. (NYSE:UNH) shares were down 3.35 percent to $59.95. You can read the detailed quantitative valuation analysis of UnitedHealth Group Inc. (NYSE:UNH) here.

Union Pacific Corporation (NYSE:UNP)

Helped by higher pricing, the Omaha, Nebraska-based railroad giant earned a profit of $957 million, or $2.03 per share, up 11 percent from $863 million, or $1.79 per share in the first quarter of last year. Total revenues increased 3.5 percent to $5.29 billion. Analysts were expecting $5.21 billion in revenues and $1.96 per share in earnings. The company reported solid growth despite a decline in cargoes. Agricultural and coal shipments also fell during the quarter.

Revenues from chemicals jumped 14 percent, while revenues from coal were down 6 percent in the period. Analysts said that Union Pacific Corporation (NYSE:UNP) is the best positioned company in the U.S. railroad industry, and it is poised to deliver reliable, stable growth.

Union Pacific Corporation (NYSE:UNP) shares were up 4.67 percent to $143.33 at 1:17 PM EDT.

No posts to display