UnitedHealth Group Inc (NYSE:UNH) shares tanked Wednesday, on the release of second-quarter financial figures.
The Minnetonka, Minnesota-based company reported second-quarter 2020 net earnings and adjusted net earnings per share of $6.91 and $7.12 were substantially higher than anticipated due primarily to the unprecedented, temporary deferral of care in the Company’s risk-based businesses.
The Company expects these results will be offset in the quarters ahead by the assistance measures already taken, the resumption of deferred care and future COVID-19 cost and economic impacts. As the pandemic advanced, access to and demand for care was most constrained from mid-March through April, began to recover in May and approached more typical levels by the end of the second quarter.
UNH adds it is maintaining its full year earnings per share outlook for 2020 of net earnings of $15.45 to $15.75 per share and adjusted net earnings of $16.25 to $16.55 per share.
UNH also expanded its COVID-19 response efforts, proactively supporting patients, customers, care providers and communities, including investing in outreach programs and clinical innovations to address the urgent needs of underserved communities disproportionately impacted by the disease.
"Our 325,000 dedicated team members, including the 120,000 clinicians serving on the front lines of care, have tirelessly responded to COVID-19 with agility, innovation and compassion," said CEO David S. Wichmann.
"We moved swiftly to assist the people we serve and their care providers, including the provision of $3.5 billion in proactive voluntary customer assistance and accelerated care provider funding. We remain committed to taking further actions to address any future imbalances as a result of the pandemic."
UNH shares sank first thing Wednesday by $5.14, or 1.6%, to $303.66
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