UnitedHealth Group (UNH) has reported better-than-expected financial results for this year’s first quarter despite a recent cyberattack on its subsidiary Change Healthcare.
The largest medical insurance company in the U.S. announced earnings per share (EPS) of $6.91 U.S. compared to $6.61 U.S. that was expected among analysts.
Revenue in the January through March quarter came in at $99.80 billion U.S. versus $99.30 billion U.S. that had been forecast on Wall Street. Sales were up 9% from a year earlier.
UnitedHealth said the growth was driven by an increase in the number of people that it serves in the U.S. The total number of domestic consumers served grew by two million during Q1.
The company also said that it incurred a one-time charge of $7 billion U.S. during the quarter from selling its Brazil operations.
UnitedHealth’s response efforts to the cyberattack at Change Healthcare was $0.74 U.S. per share, and it expects the full-year impact to be between $1.15 U.S. and $1.35 U.S. a share.
UnitedHealth disclosed in February that a cyberattack breached part of Change Healthcare’s information technology network.
The fallout from the cyberattack has been far reaching across the U.S. healthcare sector, with many doctors left without a way to fill prescriptions or get paid for their services.
The company said it has been working to bring systems back online and has advanced more than $6 billion U.S. to healthcare providers who say they need assistance.
UnitedHealth reported a medical cost ratio (MCR), which is the amount of every premium dollar that goes toward medical costs, of 84.3% for Q1.
Analysts were expecting an MCR of 83.8% for the quarter, according to estimates compiled by StreetAccount. A lower ratio typically indicates higher profitability.
In terms of guidance, UnitedHealth adjusted its full-year earnings outlook and expects to report $17.60 U.S. to $18.20 U.S. in per share profit, largely due to the cyberattack and Brazil sale.
UnitedHealth’s stock has declined 17% so far in 2024 and currently trades at $445.63 U.S. per share.
