UnitedHealth Group (UNH), the largest healthcare insurer in the U.S., has reported fourth quarter financial results that beat Wall Street forecasts on the top and bottom lines.
UnitedHealth reported earnings per share (EPS) of $6.16 U.S. and revenue of $94.4 billion U.S. for the final quarter of 2023.
That was better than the consensus forecast of analysts that called for earnings of $5.98 U.S. a share and revenue of $92.1 billion U.S., according to data from FactSet.
Despite the earnings beat, UnitedHealth’s stock dropped 2% in premarket trading after the company reported a higher-than-expected utilization rate for medical services.
The company said its medical loss ratio for Q4, which tracks the proportion of premiums paid to cover medical expenses, was 85%.
Analysts had expected UnitedHealth to report a medical loss ratio of 84.1% for Q4, according to FactSet data.
A higher medical loss ratio is of concern to analysts and investors because it means more spending on medical expenses and less room for profit at the company.
Higher-than-expected utilization of medical services by patients enrolled in U.S. Medicare Advantage plans has become an issue for UnitedHealth over the past year.
Prior to today (Jan. 11), the stock of UnitedHealth had gained 9% over the past 12 months to trade at $539.68 U.S. per share.
