"UnitedHealth Group ( NYSE: UNH) beat earnings expectations this morning, posting adjusted EPS of $2.92 against a consensus of $2.82. The stock opened near $379, buoyed by the EPS beat and a raised full-year guidance. But there's a wrinkle worth noting: revenue came in light at $113.2B versus $114.19B expected. That miss, paired with operating income that collapsed year-over-year is a blemish investors so far have not focused on. Shares are up 4.17% pre-market."
"UnitedHealth delivered on the bottom line, and that matters. A $2.92 adjusted EPS beat by $0.10 is solid execution. Yet operating income dropped sharply to $4.3B from $8.7B a year ago. That's a 50% decline. The company navigated this by managing the tax rate and share count, which allowed adjusted earnings to outpace operating performance. It's a reminder that EPS beats don't always reflect operational strength."
UnitedHealth posted adjusted EPS of $2.92, beating consensus by $0.10, while revenue missed at $113.2 billion versus $114.19 billion expected. Operating income fell to $4.3 billion from $8.7 billion a year earlier, a roughly 50% decline. UnitedHealthcare revenue grew 16% year-over-year to $87.1 billion, while Optum grew 8% to $69.2 billion, showing deceleration in the services division. Management cited elevated medical cost trends and Medicare funding reductions as ongoing headwinds. Operating cash flow was $5.9 billion, and shares traded higher pre-market following the results and a raised full-year outlook.
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