On April 16, 2024, UnitedHealth Group Inc (UNH, Financial) released its 8-K filing, detailing the financial results for the first quarter of 2024. The company reported a significant revenue increase to $99.8 billion, up nearly $8 billion year over year, which is consistent with analyst revenue estimates. However, the quarter was marred by a net loss of $1.53 per share, primarily attributed to the currency effects stemming from the sale of its Brazil operations and the Change Healthcare cyberattack.
Despite these challenges, UnitedHealth Group's adjusted earnings per share (EPS) stood at $6.91, which includes the $0.25 per share impact from Change Healthcare business disruptions but excludes the direct costs from the cyberattack and the Brazil sale. This figure surpasses the estimated earnings per share of $6.62.
UnitedHealth Group, a leading health insurer, provides medical benefits to millions worldwide. The company's Optum franchises have made it a healthcare services colossus, spanning medical and pharmaceutical benefits to outpatient care and analytics.
The cyberattack's total impact on the first quarter amounted to $0.74 per share, with the company estimating a full-year impact of $1.15 to $1.35 per share. The direct response costs, which are excluded from adjusted EPS, are projected to be between $0.85 to $0.95 per share for the full year. The company has provided over $6 billion in advance funding and interest-free loans to support care providers affected by the cyberattack.
UnitedHealth Group's first-quarter earnings from operations were $7.9 billion, including unfavorable cyberattack effects. The medical care ratio increased to 84.3%, influenced by the cyberattack and other factors. The operating cost ratio was reported at 14.1%, reflecting diligent cost management and growth investments.
Cash flows from operations were $1.1 billion, impacted by the cyberattack response actions and public sector cash receipt timings. Nevertheless, the company continued its shareholder-friendly activities, returning $4.8 billion through dividends and share repurchases.
Looking ahead, UnitedHealth Group updated its full-year 2024 net earnings outlook to $17.60 to $18.20 per share, reflecting the Brazil sale and the estimated cyberattack response costs. However, the adjusted net earnings outlook remains at $27.50 to $28.00 per share, including the estimated business disruption impacts for Change Healthcare services.
UnitedHealthcare, the company's global health care benefits segment, reported first-quarter revenues of $75.4 billion, a nearly $5 billion increase from the previous year. Optum, the health services business, saw revenues of $61 billion, a $7 billion growth led by Optum Health and Optum Rx.
The company's commitment to providing high-quality care and improving the health system's efficiency remains steadfast, even as it navigates through the challenges presented by the cyberattack and other external factors.
For a more detailed analysis and financial tables, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from UnitedHealth Group Inc for further details.
