UnitedHealth Group Inc (NYSE:UNH) reported a net profit of $22.4 billion in fiscal year 2023 and around $5.5 billion in for the fourth quarter.
Group revenues for the fourth quarter rose 14% year-over-year to $94.4 billion, topping analysts’ estimates of $92.14 billion.
UnitedHealth said adjusted EPS for the fourth quarter came in at $6.16, up from $5.34 a year ago, ahead of the consensus of $5.98.
The full-year medical care ratio is 83.2% compared to 82% last year, driven by previously noted outpatient care, primarily serving seniors and the business mix. The fourth quarter medical care ratio was 85%.
UnitedHealthcare segment fourth-quarter sales increased to $70.8 billion from $63.0 billion a year ago.
Overall premiums in the fourth quarter increased to $73.2 billion, up 13.2% Y/Y, while operating costs increased 14.3% Y/Y to $86.74 billion.
People served by UnitedHealthcare grew by over 1 million in 2023. The number of consumers served with commercial benefits grew by over 800,000 in 2023.
Optum segment fourth-quarter revenues increased to $59.5 billion from $47.9 billion.
The number of patients served under value-based arrangements grew by nearly 900,000 to more than 4.1 million in 2023.
Guidance: UnitedHealth affirmed the fiscal year 2024 performance objectives established in November 2023, with revenues of $400 billion-$403 billion versus a consensus of $401.69 billion.
It sticks to fiscal 2024 adjusted net earnings of $27.50-$28.00 per share versus consensus of $27.93
Cash flows from operations are expected to range from $30 billion to $31 billion.
Price Action: UNH shares are down 5.31% at $511.03 during premarket trading on the last check Friday.
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This article UnitedHealth’s 2023 Profits Hit $22B, But Shares Slide On Higher Medical Costs originally appeared on Benzinga.com
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