- Earnings: The $6.91 per share was adjusted for, which may not compare to the $6.61 that analysts expected, according to LSEG.
- he won: $99.8 billion, compared to $99.3 billion expected by LSEG.
UnitedHealth reported revenue growth close to 9% from $91.9 billion in the same period last year.
The company said it incurred charges of about $7 billion during the quarter from the sale of its Brazilian operations statement Tuesday. UnitedHealth said currency impacts from the sale in Brazil as well as negative impacts from the cyberattack contributed to a net loss during the period. The company reported that it had a net loss of $1.41 billion, or $1.53 per share, compared to net income of $5.61 billion, or $5.95 per share, in the previous year.
UnitedHealth reported adjusted earnings of $6.91 per share during the quarter. The revised figure does not include sales in Brazil, but only part of the impact of the cyber attack, the company said. The effects of a cyberattack have been divided into two categories: “direct response” costs and “business disruption” costs.
Direct response efforts, such as UnitedHealth's effort to restore Change Healthcare platforms, amounted to an impact of 49 cents per share in the quarter. Business interruption costs, such as Change Healthcare's revenue loss, were 25 cents per share. UnitedHealth said its adjusted earnings figure included the impacts of business disruption, but excluded direct response costs.
The company said the total impact of the cyber attack in the first quarter was 74 cents per share, and it expects the full-year impact to be between $1.15 and $1.35 per share.
UnitedHealth reported its medical cost ratio, which is how much each premium dollar goes to medical costs, of 84.3% for the first quarter. This includes 40 basis points of cyber attack impact, the company said. Analysts had expected the MCR to reach 83.8%, according to StreetAccount. A lower ratio usually indicates higher profitability.
Shares of UnitedHealth rose more than 7% in premarket trading Tuesday. As of Monday's close, the stock is down about 15% for the year.
UnitedHealth consists of two main business units: Optum and UnitedHealthcare. Optum offers a range of pharmaceutical and consulting services and provides medical care to about 103 million consumers, according to the company report. website.
Optum reported revenue of $61.1 billion in the first quarter, up from $54.1 billion in the same period last year. Optum's revenue growth was driven by its patient care and pharmacy arms due to “strong expansion” in the number of people served, UnitedHealth said.
In 2022, Optum completed a $13 billion merger with Change Healthcare, which provides payment and revenue cycle management tools. Change Healthcare processes more than 15 billion billing transactions annually, and one in three patient records passes through its systems, according to the company.
UnitedHealth It was revealed in February A cyber threat actor compromised part of Change Healthcare's IT network, prompting the company to immediately disconnect the affected systems. The repercussions were far-reaching across the health care sector, with many doctors left without a way to fill prescriptions or get paid for their services.
The company has been working to bring systems back online in recent weeks, and UnitedHealth said Tuesday it has provided more than $6 billion to health care providers who need help.
UnitedHealth said it continues to make “significant progress” in restoring Change Healthcare services.
“The core story at UnitedHealth Group remains that our colleagues are delivering improved experiences for the people we serve and driving balanced growth even as we quickly and effectively address the attack on Change Healthcare,” UnitedHealth CEO Andrew Witty said in the statement.
UnitedHealth's other business unit, UnitedHealthcare, provides insurance coverage and benefits services to millions of Americans, according to its website. UnitedHealthcare reported revenue of $75.4 billion in the first quarter, up from $70.5 billion a year ago.
The company said the growth was driven by an increase in the number of people served by UnitedHealthcare in the United States. The total number of domestic consumers served by the unit grew by 2 million during the first quarter.
UnitedHealth said it has updated its full-year net earnings outlook and expects them to be between $17.60 and $18.20 per share, largely due to the cyber attack and sell-off in Brazil. The company maintained its adjusted net earnings outlook of $27.50 to $28 per share.
UnitedHealth will hold its quarterly conference call with investors on Tuesday at 8:45 a.m. ET.
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