UnitedHealth Trumpets Q2 Earnings

UnitedHealth Group (NYSE: UNH) reported second quarter results, with continued strong, well-diversified performance across the enterprise.

Second-quarter 2018 revenues grew $6 billion or 12.1% year-over-year to $56.1 billion.

Second-quarter earnings from operations grew $473 million or 12.7% year-over-year to $4.2 billion. Adjusted net earnings of $3.14 per share grew 27.6% with an improved net margin of 5.2%.

Cash flows from operations of $4.0 billion were 1.3x net income in second quarter 2018, compared to $2.2 billion and 0.9x net income in second quarter 2017.

CEO David Wichmann said, "UnitedHealth Group delivers increasing value to more people, driven by strong execution, consistently high quality, deep relationships and our distinctive combination of clinical, technology and information capabilities.

"As we look ahead, we will drive our growth on the strength of practical innovations that anticipate and respond to increasing consumer expectations and clear social needs."

Based on first-half 2018 results and the business outlook for the balance of the year, the Company has raised its outlook for 2018 net earnings to a range of $11.80 to $12.05 per share and adjusted net earnings to a range of $12.50 to $12.75 per share, and now expects cash flows from operations to approach $15.5 billion.

UnitedHealth Group repurchased 2.2 million shares for $500 million in the second quarter, bringing year-to-date purchases to 13.8 million shares for $3.15 billion. Dividends paid to shareholders were $866 million in the second quarter and reflected raising the annual dividend payment rate by 20 percent to $3.60 per share in June 2018.

Shares slumped $7.17, or 2.8%, to $249.81