UnitedHealth (UNH) Q1 Earnings Report Preview: What To Look For

Health insurance company UnitedHealth (NYSE:UNH) will be reporting earnings tomorrow before market hours. Here’s what investors should know.

UnitedHealth missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $100.8 billion, up 6.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates. It added 5,000 customers to reach a total of 53.73 million.

Is UnitedHealth a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting UnitedHealth’s revenue to grow 11.7% year on year to $111.5 billion, improving from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.29 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UnitedHealth has missed Wall Street’s revenue estimates four times over the last two years.

With UnitedHealth being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for healthcare providers & services stocks. However, the segment has faced declining investor sentiment as UnitedHealth’s peer group is down 8.1% on average over the last month. UnitedHealth is up 16.1% during the same time and is heading into earnings with an average analyst price target of $637.72 (compared to the current share price of $583.59).

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