UNITEDHEALTH GROUP Reports Second Quarter FY2023 Results on June 30th 2023
July 18, 2023
🌥️Earnings Overview
UNITEDHEALTH GROUP ($NYSE:UNH) announced on June 30th 2023 that they had achieved record-breaking revenue of USD 91.8 billion in the second quarter of FY2023, representing a 14.7% year-over-year increase. Net income also saw a 7.9% year-over-year increase to USD 5.5 billion.
Stock Price
The stock opened at $462.6 and closed at $480.2, rising by 7.2% from the prior closing price of 447.8. This marked a significant increase from the previous trading day, signifying that investors were optimistic about the company’s second quarter performance. Analysts attributed the rise in stock prices to UNITEDHEALTH GROUP‘s strong financials, which included a 10% increase in revenue compared to the same quarter last year. These impressive numbers indicate that UNITEDHEALTH GROUP is continuing to perform well and remain profitable in spite of the ongoing pandemic. Furthermore, UNITEDHEALTH GROUP’s outlook for the rest of the year is promising.
The company has indicated that it expects to deliver steady financial growth for the remainder of the year, driven by continued investment into its core businesses and a focus on cost containment. The company also reiterated its commitment to its long-term strategic growth goals, which aim to create value for shareholders over time. Overall, while the second quarter results were positive, investors will be watching closely to see how UNITEDHEALTH GROUP performs throughout the rest of the year and its ability to remain profitable in an uncertain economic climate. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unitedhealth Group. More…
| Total Revenues | Net Income | Net Margin |
| 345.23k | 21.11k | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unitedhealth Group. More…
| Operations | Investing | Financing |
| 41.38k | -27.96k | 3.71k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unitedhealth Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 280.16k | 188.01k | 93.84 |
Key Ratios Snapshot
Some of the financial key ratios for Unitedhealth Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.9% | 6.2% | 8.8% |
| FCF Margin | ROE | ROA |
| 11.1% | 22.6% | 6.8% |
Analysis
GoodWhale conducted an analysis of UNITEDHEALTH GROUP‘s wellbeing and found that the company is doing exceptionally well. Our Star Chart revealed that the health score of UNITEDHEALTH GROUP is 8/10 in terms of its cashflows and debt, demonstrating that the company is capable of sustaining its operations in times of crisis. UNITEDHEALTH GROUP was also found to be particularly strong in dividend, growth, and profitability, but weak in asset. Based on our analysis, we concluded that UNITEDHEALTH GROUP is classified as a ‘gorilla’, a type of company that has a strong competitive advantage and has achieved stable and high revenue/earning growth. Investors that are looking for a long-term investment might be interested in such companies. More…
Peers
One of the largest health insurance providers in the United States is UnitedHealth Group Inc. They offer a wide variety of health insurance plans and are always looking for new ways to provide the best possible service to their customers. Some of their main competitors are Humana Inc, CVS Health Corp, and Centene Corp. Although all of these companies are very different, they all share one common goal: to provide their customers with the best health insurance coverage possible.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company’s revenue was US$54.4 billion in 2018.
– CVS Health Corp ($NYSE:CVS)
CVS Health Corp is a leading provider of healthcare services in the United States. The company has a market capitalization of $120.33 billion as of 2022 and a return on equity of 10.96%. The company operates more than 9,700 retail pharmacies, over 1,100 walk-in medical clinics, and a leading pharmacy benefits manager with more than 77 million members. CVS Health Corp is dedicated to helping people on their path to better health by providing them with the resources they need to make informed decisions about their health and wellbeing.
– Centene Corp ($NYSE:CNC)
Centene Corporation is a large publicly traded managed care organization. The company’s core business is Medicaid managed care, but it also offers Medicare, long-term care, dental, behavioral health, and vision plans. The company serves over 25 million members in 26 states and the District of Columbia.
Centene’s market cap of $43.28 billion and ROE of 6.97% indicate that it is a large and successful company. The company’s size and success are due in part to its focus on Medicaid managed care. Medicaid is a government health insurance program for low-income Americans. Centene has been able to grow its Medicaid business by providing high-quality care at a lower cost than its competitors.
Summary
Investors in UnitedHealth Group (UNH) appear to have been rewarded for their faith in the company following the release of their second-quarter FY2023 results. Revenue achieved a record-high of USD 91.8 billion, representing a 14.7% increase year-on-year, while net income rose by 7.9% to USD 5.5 billion. The stock price reacted positively to the news, demonstrating the market’s confidence in the company’s performance and future prospects. Investors should continue to closely monitor UNH’s progress as it looks to build on its recent strong performance and consolidate its market position.
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