The leader of the U.S. healthcare services and insurance market has had a few difficult quarters behind it. However, the latest results seem to indicate that the company’s fortunes may finally be turning around. Q1 results beat investors’ expectations, and the stock is up nearly 10% in today’s session.
- The company reported revenue of USD 111.7 billion. This represents an approximately 2% year-on-year increase and is above analysts’ expectations of around USD 109 billion.
Where the company truly stood out was profitability and guidance.
- EPS came in as high as USD 7.23 versus expectations of around USD 6.6, representing a 5% increase.
- Full-year EPS guidance was raised from USD 17.75 to USD 18.25, which is well above the Wall Street consensus of about USD 17.8.
Investors are also focusing on the company’s medical cost ratio, a key metric in this business. A decline (optimization) in medical costs translates into improved profitability of the business model. The company managed to bring the medical cost ratio down to 83.9%, a direct improvement in profitability.
Against the backdrop of rising demand for healthcare services in the U.S., the base effect and the impressive improvement in profitability may help the company decisively put a difficult period behind it.
UNH.US (D1)
The stock price has returned to the area near the upper boundary of the consolidation channel. A prerequisite for further gains is a clear breakout above the broad, strong resistance zone between 360 and 380. If that happens, the price may “chase” the rising trendline (orange). Source: xStation5.
US Open: Macro Up, Tensions Down!
Defense sector earnings: RTX, Thales and Northrop Grumman
USA Rare Earth Acquires Key Brazilian Rare Earth Metal Mines ⛏️
US OPEN: Return of geopolitical concerns hits markets 💥
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
