UnitedHealth Group Reports Third Quarter 2024 Results
UnitedHealth Group reported strong Q3 2024 results with revenues of $100.8 billion, up $8.5 billion year-over-year. Earnings per share were $6.51, including cyberattack impacts, while adjusted earnings were $7.15 per share. The company maintained its full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share, despite absorbing an estimated $0.75 per share in business disruption impacts.
Key highlights include:
- UnitedHealthcare's commercial domestic offerings grew by 2.4 million consumers year-to-date
- Medical care ratio increased to 85.2% from 82.3% last year
- Operating cost ratio improved to 13.2% from 15.0% in the prior year
- Cash flows from operations were $14.0 billion in Q3
- The company returned over $9.6 billion to shareholders through dividends and share repurchases in the first nine months of 2024
UnitedHealth Group ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi di $100.8 miliardi, in aumento di $8.5 miliardi rispetto all'anno precedente. Gli utili per azione sono stati di $6.51, inclusi gli impatti degli attacchi informatici, mentre gli utili rettificati sono stati di $7.15 per azione. L'azienda ha mantenuto le previsioni sugli utili rettificati per l'intero anno 2024, pari a $27.50 a $27.75 per azione, nonostante abbia assorbito un impatto stimato di $0.75 per azione a causa delle interruzioni aziendali.
I principali risultati includono:
- Le offerte commerciali domestiche di UnitedHealthcare sono cresciute di 2.4 milioni di consumatori dall'inizio dell'anno
- Il rapporto di assistenza medica è aumentato all'85.2% rispetto all'82.3% dell'anno scorso
- Il rapporto dei costi operativi è migliorato al 13.2% rispetto al 15.0% dell'anno precedente
- Flussi di cassa dalle operazioni sono stati di $14.0 miliardi nel terzo trimestre
- L'azienda ha restituito oltre $9.6 miliardi agli azionisti tramite dividendi e riacquisti di azioni nei primi nove mesi del 2024
UnitedHealth Group informó sobre resultados sólidos para el tercer trimestre de 2024, con ingresos de $100.8 mil millones, un aumento de $8.5 mil millones en comparación con el año anterior. Las ganancias por acción fueron de $6.51, incluidos los impactos de los ciberataques, mientras que las ganancias ajustadas fueron de $7.15 por acción. La compañía mantuvo su perspectiva de ganancias ajustadas para todo el año 2024 en $27.50 a $27.75 por acción, a pesar de absorber un impacto estimado de $0.75 por acción debido a las interrupciones comerciales.
Los puntos destacados incluyen:
- Las ofertas comerciales nacionales de UnitedHealthcare crecieron en 2.4 millones de consumidores hasta la fecha
- El ratio de atención médica aumentó al 85.2% desde el 82.3% del año pasado
- El ratio de costos operativos mejoró al 13.2% desde el 15.0% del año anterior
- Los flujos de efectivo de las operaciones fueron de $14.0 mil millones en el tercer trimestre
- La compañía devolvió más de $9.6 mil millones a los accionistas a través de dividendos y recompras de acciones en los primeros nueve meses de 2024
UnitedHealth Group는 2024년 3분기에 $100.8억 달러의 매출을 기록하며 전년 대비 $8.5억 달러 증가한 강력한 결과를 발표했습니다. 주당 순이익은 $6.51였으며, 사이버 공격의 영향을 포함한 수치입니다. 조정된 순이익은 주당 $7.15입니다. 회사는 비즈니스 중단 영향을 감안할 때 주당 $27.50에서 $27.75의 2024년 전체 조정된 순이익 전망을 유지했습니다.
주요 내용은 다음과 같습니다:
- UnitedHealthcare의 상업적 국내 제공 서비스는 올해 들어 240만 소비자 증가했습니다.
- 의료비용 비율이 지난해 82.3%에서 85.2%로 증가했습니다.
- 운영 비용 비율은 지난해 15.0%에서 13.2%로 개선되었습니다.
- 3분기 운영에서 현금 흐름은 $14.0억 달러였습니다.
- 회사는 2024년 첫 9개월 동안 배당금과 자사주 매입을 통해 주주에게 $9.6억 달러 이상을 반환했습니다.
UnitedHealth Group a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus de $100,8 milliards, soit une augmentation de $8,5 milliards par rapport à l'année précédente. Les bénéfices par action s'élevaient à $6,51, y compris les impacts des cyberattaques, tandis que les bénéfices ajustés étaient de $7,15 par action. L'entreprise a maintenu ses prévisions de bénéfices ajustés pour l'année 2024 entre $27,50 et $27,75 par action, malgré l'absorption d'un impact estimé de $0,75 par action dû à des interruptions d'activité.
Les points clés incluent :
- Les offres commerciales nationales de UnitedHealthcare ont augmenté de 2,4 millions de consommateurs depuis le début de l'année.
- Le ratio des soins médicaux a augmenté à 85,2 % contre 82,3 % l'an dernier.
- Le ratio des coûts d'exploitation s'est amélioré de 15,0 % l'année précédente à 13,2 %.
- Les flux de trésorerie d'exploitation se sont élevés à 14,0 milliards de dollars au troisième trimestre.
- L'entreprise a restitué plus de 9,6 milliards de dollars à ses actionnaires par le biais de dividendes et de rachats d'actions au cours des neuf premiers mois de 2024.
UnitedHealth Group hat solide Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Umsatz von $100,8 Milliarden, ein Anstieg um $8,5 Milliarden im Vergleich zum Vorjahr. Der Gewinn pro Aktie betrug $6,51, einschließlich der Auswirkungen von Cyberangriffen, während der bereinigte Gewinn $7,15 pro Aktie betrug. Das Unternehmen hielt die Prognose für den bereinigten Gewinn für das Gesamtjahr 2024 bei $27,50 bis $27,75 pro Aktie, trotz der Annahme eines geschätzten Impacts von $0,75 pro Aktie aufgrund von Geschäftsstörungen.
Wesentliche Highlights sind:
- Die kommerziellen Inlandsangebote von UnitedHealthcare wuchsen bis heute um 2,4 Millionen Verbraucher.
- Das medizinische Kostenverhältnis stieg von 82,3 % im letzten Jahr auf 85,2 %.
- Das Betriebskostenverhältnis verbesserte sich von 15,0 % im Vorjahr auf 13,2 %.
- Der operative Cashflow betrug im 3. Quartal $14,0 Milliarden.
- Das Unternehmen hat den Aktionären in den ersten neun Monaten 2024 über $9,6 Milliarden durch Dividenden und Aktienrückkäufe zurückgegeben.
- Revenue growth of $8.5 billion year-over-year to $100.8 billion
- UnitedHealthcare's commercial domestic offerings grew by 2.4 million consumers year-to-date
- Maintained full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share
- Improved operating cost ratio to 13.2% from 15.0% in the prior year
- Strong cash flows from operations of $14.0 billion in Q3
- Returned over $9.6 billion to shareholders through dividends and share repurchases in the first nine months of 2024
- Earnings per share of $6.51 impacted by cyberattack
- Medical care ratio increased to 85.2% from 82.3% last year
- Absorbing an estimated $0.75 per share in business disruption impacts
- No favorable earnings impacting medical reserve development in the quarter
Insights
UnitedHealth Group's Q3 2024 results demonstrate strong financial performance and growth. Revenues increased by $8.5 billion year-over-year to $100.8 billion, driven by expansion in both Optum and UnitedHealthcare segments. The company's adjusted earnings per share of
Key financial metrics:
- Medical care ratio increased to
85.2% from82.3% last year - Operating cost ratio improved to
13.2% from15.0% in the prior year - Cash flows from operations were
$14.0 billion , 2.2 times net income - Return on equity stood at
26.3%
The company maintained its full-year 2024 adjusted earnings outlook of
UnitedHealth Group's Q3 results reflect significant growth in its customer base and service offerings. UnitedHealthcare's domestic commercial offerings grew by 2.4 million consumers year-to-date, reaching 29.7 million. This expansion indicates strong market acceptance of their innovative products and consumer-focused approach.
The company's Medicare Advantage plans are set to reach
Optum Rx's performance is particularly noteworthy, with revenue growth of
Despite challenges from the Change Healthcare cyberattack, UNH's diverse business model and strong market position across multiple healthcare segments provide resilience and continued growth opportunities.
-
Revenues of
$100.8 Billion $8.5 Billion - Consumers Served by UnitedHealthcare’s Commercial Domestic Offerings Grew 2.4 Million Year to Date
-
Third Quarter Earnings of
$6.51 -
Adjusted Earnings of
$7.15 $0.12 $0.28
UnitedHealth Group (NYSE: UNH) reported third quarter 2024 results reflecting broad-based growth in the number of people served by Optum and UnitedHealthcare.
UnitedHealth Group corporate headquarters (Photo: Business Wire)
“Our continued growth, which positions us well for the coming years, is rooted in the innovative products and responsive service of our people that are embraced each day across the full range of health care participants,” said Andrew Witty, chief executive officer of UnitedHealth Group.
The company’s full year 2024 net earnings outlook of
The company’s adjusted net earnings outlook of
Quarterly Financial Performance |
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Three Months Ended
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September 30,
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September 30,
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September 30,
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December 31,
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Revenues |
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Earnings from Operations |
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Net Margin |
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-
Third quarter 2024 revenues grew nearly
$8.5 billion $100.8 billion $8.7 billion $0.3 billion $9.0 billion -
The third quarter 2024 medical care ratio was
85.2% compared to82.3% last year. Among factors contributing to the increase were the previously noted CMS Medicare funding reductions, medical reserve development effects and business and member mix. The company did not have any favorable earnings impacting medical reserve development in the quarter. - Days claims payable of 47.4 compared to 45.2 in the second quarter of 2024 and 50.7 in the third quarter of 2023. The increase from the second quarter 2024 was due to a return to more normal claims submission patterns from care providers. The change from the year ago level reflected continued impact due to the accelerated claims payment timeframes.
-
The third quarter of 2024 operating cost ratio of
13.2% compares to13.3% in the second quarter of 2024 and15.0% in the prior year, reflecting continued strong operating cost efficiency. -
Cash flows from operations from the third quarter of 2024 were
$14.0 billion $9.6 billion 26.3% in the quarter reflected the company’s consistent, broad-based earnings and efficient capital structure.
UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience, and reducing the total cost of care.
Quarterly Financial Performance |
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Three Months Ended |
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September 30,
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September 30,
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December 31,
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Revenues |
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Earnings from Operations |
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Operating Margin |
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-
UnitedHealthcare third quarter revenues of
$74.9 billion $5 billion $4.2 billion - Year to date, the number of consumers served domestically with the company’s commercial offerings grew by 2.4 million to 29.7 million, as UnitedHealthcare’s innovative and consumer-focused product portfolio continues to resonate with consumers and employers.
-
UnitedHealthcare serves 9.4 million seniors and people with complex needs and the company’s 2025 Medicare Advantage plans will reach
96% of eligible Medicare beneficiaries. Recently released Stars scores by CMS for plan year 2026 are consistent with initial levels for plan year 2025 and company expectations. - Total people served by the company’s state-based community offerings grew from the second quarter to 7.5 million, as the state-driven Medicaid eligibility redeterminations process concluded. The UnitedHealthcare team is continuing its comprehensive outreach to help families maintain, reinstate, or find other affordable coverage.
The Optum health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.
Quarterly Financial Performance |
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Three Months Ended
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September 30,
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September 30, 2024 (Adj) |
September 30,
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December 31,
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Revenues |
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Earnings from Operations |
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Operating Margin |
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-
Optum third quarter revenues of
$63.9 billion $7.2 billion $4.5 billion $4.8 billion $135 million -
Optum Health revenue grew
$2.1 billion $25.9 billion -
Optum Insight operating earnings were approximately
$800 million $1 billion $135 million $335 million $1 billion -
Optum Rx revenue growth of
$5.4 billion $34.2 billion
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow UnitedHealth Group on LinkedIn.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company’s website (www.unitedhealthgroup.com). Following the call, a webcast replay will be on the Investor Relations page through October 29, 2024. This earnings release and the Form 8-K dated October 15, 2024, can also be accessed from the Investor Relations page of the company’s website.
Non-GAAP Financial Information
This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities laws. The words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to maintain or increase our market share; changes in or challenges to our public sector contract awards; failure to achieve targeted operating cost productivity improvements; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; the impact of potential changes in tax laws and regulations; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to complete, manage or integrate strategic transactions; risk and uncertainties associated with the pending sale of operations in
This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations, more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
UNITEDHEALTH GROUP |
Earnings Release Schedules and Supplementary Information |
Quarter Ended September 30, 2024 |
- Condensed Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Revenues by Business - Supplemental Financial Information
- Earnings by Business - Supplemental Financial Information
- People Served and Performance Metrics - Supplemental Financial Information
- Reconciliation of Non-GAAP Financial Measures
UNITEDHEALTH GROUP |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in millions, except per share data; unaudited) |
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues |
|
|
|
|
|
|
|
|
Premiums |
|
|
|
|
|
|
|
|
Products |
|
12,631 |
|
10,354 |
|
36,751 |
|
31,272 |
Services |
|
9,104 |
|
8,671 |
|
26,742 |
|
25,414 |
Investment and other income |
|
1,643 |
|
997 |
|
3,651 |
|
2,910 |
Total revenues |
|
100,820 |
|
92,361 |
|
299,471 |
|
277,195 |
Operating costs |
|
|
|
|
|
|
|
|
Medical costs |
|
65,957 |
|
59,550 |
|
197,150 |
|
179,663 |
Operating costs |
|
13,280 |
|
13,855 |
|
40,519 |
|
41,289 |
Cost of products sold |
|
11,834 |
|
9,423 |
|
34,230 |
|
28,576 |
Depreciation and amortization |
|
1,041 |
|
1,007 |
|
3,058 |
|
2,998 |
Total operating costs |
|
92,112 |
|
83,835 |
|
274,957 |
|
252,526 |
Earnings from operations |
|
8,708 |
|
8,526 |
|
24,514 |
|
24,669 |
Interest expense |
|
(1,074) |
|
(834) |
|
(2,903) |
|
(2,416) |
Loss on sale of subsidiary and subsidiaries held for sale |
|
(20) |
|
— |
|
(8,331) |
|
— |
Earnings before income taxes |
|
7,614 |
|
7,692 |
|
13,280 |
|
22,253 |
Provision for income taxes |
|
(1,356) |
|
(1,654) |
|
(3,822) |
|
(4,784) |
Net earnings |
|
6,258 |
|
6,038 |
|
9,458 |
|
17,469 |
Earnings attributable to noncontrolling interests |
|
(203) |
|
(197) |
|
(596) |
|
(543) |
Net earnings attributable to UnitedHealth Group common shareholders |
|
|
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|
|
Diluted earnings per share attributable to UnitedHealth Group common shareholders |
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Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a) |
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
930 |
|
936 |
|
930 |
|
940 |
(a) |
See page 7 for a reconciliation of non-GAAP measures. |
UNITEDHEALTH GROUP |
||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in millions; unaudited) |
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|
|
September 30,
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|
December 31,
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Assets |
|
|
|
|
Cash and short-term investments |
|
|
|
|
Accounts receivable, net |
|
20,024 |
|
21,276 |
Other current assets |
|
35,100 |
|
27,533 |
Total current assets |
|
92,258 |
|
78,437 |
Long-term investments |
|
48,689 |
|
47,609 |
Other long-term assets |
|
158,362 |
|
147,674 |
Total assets |
|
|
|
|
Liabilities, redeemable noncontrolling interests and equity |
|
|
|
|
Medical costs payable |
|
|
|
|
Short-term borrowings and current maturities of long-term debt |
|
3,909 |
|
4,274 |
Other current liabilities |
|
63,705 |
|
62,385 |
Total current liabilities |
|
101,565 |
|
99,054 |
Long-term debt, less current maturities |
|
74,101 |
|
58,263 |
Other long-term liabilities |
|
19,188 |
|
17,484 |
Redeemable noncontrolling interests |
|
4,574 |
|
4,498 |
Equity |
|
99,881 |
|
94,421 |
Total liabilities, redeemable noncontrolling interests and equity |
|
|
|
|
UNITEDHEALTH GROUP |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in millions; unaudited) |
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Nine Months Ended
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||
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|
2024 |
|
2023 |
Operating Activities |
|
|
|
|
Net earnings |
|
|
|
|
Noncash items: |
|
|
|
|
Depreciation and amortization |
|
3,058 |
|
2,998 |
Deferred income taxes and other |
|
(844) |
|
(553) |
Share-based compensation |
|
831 |
|
851 |
Loss on sale of subsidiary and subsidiaries held for sale |
|
8,331 |
|
— |
Net changes in operating assets and liabilities |
|
1,001 |
|
13,496 |
Cash flows from operating activities |
|
21,835 |
|
34,261 |
Investing Activities |
|
|
|
|
Sales and maturities of investments, net of purchases (purchases, net of sales and maturities) |
|
1,852 |
|
(2,850) |
Purchases of property, equipment and capitalized software |
|
(2,587) |
|
(2,427) |
Cash paid for acquisitions and other transactions, net |
|
(11,674) |
|
(8,389) |
Loans to care providers - cyberattack |
|
(8,904) |
|
— |
Repayment of care provider loans - cyberattack |
|
3,189 |
|
— |
Other, net |
|
(1,284) |
|
(721) |
Cash flows used for investing activities |
|
(19,408) |
|
(14,387) |
Financing Activities |
|
|
|
|
Common share repurchases |
|
(4,028) |
|
(6,500) |
Dividends paid |
|
(5,601) |
|
(5,023) |
Net change in short-term borrowings and long-term debt |
|
15,120 |
|
5,848 |
Other, net |
|
(661) |
|
1,302 |
Cash flows from (used for) financing activities |
|
4,830 |
|
(4,373) |
Effect of exchange rate changes on cash and cash equivalents |
|
(30) |
|
49 |
Increase in cash and cash equivalents, including cash within businesses held for sale |
|
7,227 |
|
15,550 |
Less: cash within businesses held for sale |
|
(254) |
|
— |
Net increase in cash and cash equivalents |
|
6,973 |
|
15,550 |
Cash and cash equivalents, beginning of period |
|
25,427 |
|
23,365 |
Cash and cash equivalents, end of period |
|
|
|
|
UNITEDHEALTH GROUP |
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REVENUES BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION |
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(in millions; unaudited) |
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Optum |
|
UnitedHealth
|
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UnitedHealthcare |
|
Optum
|
|
Optum
|
|
Optum
|
|
Total
|
|
|
Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Business disruption impacts - cyberattack (c) |
|
$— |
|
$— |
|
|
|
$— |
|
|
|
|
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
South American impacts |
|
220 |
|
— |
|
— |
|
— |
|
— |
|
220 |
Adjusted revenues (b) |
|
|
|
|
|
|
|
|
|
|
|
|
Business disruption impacts - cyberattack (c) |
|
$— |
|
$— |
|
|
|
$— |
|
|
|
|
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
UnitedHealthcare Revenues |
||||||||||||
(in millions; unaudited) |
||||||||||||
|
|
Employer & Individual (E&I) |
|
Medicare &
|
|
Community &
|
|
Total
|
||||
|
|
Domestic |
|
Global |
|
Total E&I |
|
|
|
|||
Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Optum and consolidated revenues for the three months ended September 30, 2024 and 2023 include Optum eliminations of |
(b) |
See page 7 for description of non-GAAP measures. |
(c) |
Amounts represent reduced revenues due to business disruption. |
UNITEDHEALTH GROUP |
|||||||||||||
EARNINGS BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||||||||
(in millions, except percentages; unaudited) |
|||||||||||||
|
|
|
|
|
Optum |
|
UnitedHealth
|
||||||
|
|
UnitedHealthcare |
|
|
Optum
|
|
Optum
|
|
Optum
|
|
Total
|
|
|
Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct response costs - cyberattack |
|
— |
|
|
— |
|
257 |
|
— |
|
257 |
|
257 |
Adjusted earnings from operations (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total direct response costs - cyberattack (c) |
|
$— |
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
5.6 % |
|
|
8.3 % |
|
16.0 % |
|
4.5 % |
|
7.0 % |
|
8.6 % |
Adjusted operating margin (b) |
|
5.6 % |
|
|
8.3 % |
|
21.3 % |
|
4.5 % |
|
7.4 % |
|
8.9 % |
Business disruption impacts - cyberattack (d) |
|
$— |
|
|
$— |
|
|
|
$— |
|
|
|
|
Total cyberattack impacts |
|
$— |
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
6.6 % |
|
|
6.6 % |
|
22.3 % |
|
4.4 % |
|
6.9 % |
|
9.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct response costs - cyberattack |
|
485 |
|
(a) |
160 |
(a) |
876 |
|
— |
|
1,036 |
|
1,521 |
South American impacts |
|
115 |
|
|
— |
|
— |
|
— |
|
— |
|
115 |
Adjusted earnings from operations (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total direct response costs - cyberattack (c) |
|
|
|
|
|
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
5.6 % |
|
|
7.5 % |
|
13.1 % |
|
4.2 % |
|
6.3 % |
|
8.2 % |
Adjusted operating margin (b) |
|
5.9 % |
|
|
7.7 % |
|
19.3 % |
|
4.2 % |
|
6.9 % |
|
8.7 % |
Business disruption impacts - cyberattack (d) |
|
$— |
|
|
$— |
|
|
|
$— |
|
|
|
|
Total cyberattack impacts |
|
|
|
|
|
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
6.3 % |
|
|
6.9 % |
|
21.1 % |
|
4.1 % |
|
6.8 % |
|
8.9 % |
(a) |
Amounts primarily represent incremental medical costs for accommodations to support care providers. |
(b) |
See page 7 for description of non-GAAP measures. |
(c) |
Amounts represent direct response costs incurred within the operating segments and at the parent (e.g., interest expense). |
(d) |
Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to earnings from operations. |
UNITEDHEALTH GROUP |
||||||||
PEOPLE SERVED AND PERFORMANCE METRICS - SUPPLEMENTAL FINANCIAL INFORMATION |
||||||||
(unaudited) |
||||||||
UnitedHealthcare Customer Profile |
||||||||
(in thousands) |
||||||||
People Served |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
Commercial - Domestic: |
|
|
|
|
|
|
|
|
Risk-based |
|
8,900 |
|
8,735 |
|
8,115 |
|
8,120 |
Fee-based |
|
20,830 |
|
20,835 |
|
19,200 |
|
19,130 |
Total Commercial - Domestic |
|
29,730 |
|
29,570 |
|
27,315 |
|
27,250 |
Medicare Advantage |
|
7,810 |
|
7,770 |
|
7,695 |
|
7,645 |
Medicaid |
|
7,450 |
|
7,410 |
|
7,845 |
|
8,065 |
Medicare Supplement (Standardized) |
|
4,340 |
|
4,335 |
|
4,355 |
|
4,345 |
Total Community and Senior |
|
19,600 |
|
19,515 |
|
19,895 |
|
20,055 |
Total UnitedHealthcare - Domestic Medical |
|
49,330 |
|
49,085 |
|
47,210 |
|
47,305 |
Commercial - Global |
|
1,335 |
|
1,330 |
|
5,540 |
|
5,475 |
Total UnitedHealthcare - Medical |
|
50,665 |
|
50,415 |
|
52,750 |
|
52,780 |
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
Medicare Part D stand-alone |
|
3,055 |
|
3,065 |
|
3,315 |
|
3,355 |
Optum Performance Metrics |
||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
Optum Health Consumers Served (in millions) |
|
104 |
|
104 |
|
103 |
|
103 |
Optum Insight Contract Backlog (in billions) |
|
|
|
|
|
|
|
|
Optum Rx Quarterly Adjusted Scripts (in millions) |
|
407 |
|
399 |
|
400 |
|
383 |
Note: UnitedHealth Group served 148 million unique individuals across all businesses at September 30, 2024. |
UNITEDHEALTH GROUP |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
Use of Non-GAAP Financial Measures |
Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin, adjusted net margin and adjusted revenues are non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Adjustments made to these measures are as follows: Intangible Amortization: Adjusted net earnings per share excludes intangible amortization from the relevant GAAP measure. As amortization fluctuates based on the size and timing of the Company’s acquisition activity, management believes this exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company’s revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share.
South American Impacts: Adjusted net earnings per share and adjusted net margin excludes the effects of various international transactions, including the loss on sale of our Brazilian operations that was completed on February 6, 2024, the loss on our remaining South American operations being classified as held for sale and certain other non-recurring matters impacting our South American operations. Adjusted earnings from operations, adjusted operating margin and adjusted revenues excludes the effects of certain non-recurring matters impacting our South American operations. As these matters are related to the Company's strategy to exit Direct Response Costs - Cyberattack: Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin and adjusted net margin excludes cyberattack direct response costs. Management believes the exclusion of costs incurred to investigate and remediate the attack, other direct and incremental costs incurred as a result of the cyberattack and incremental costs for accommodations to support care providers presents a more useful comparison of the Company's and its reportable segments' underlying business performance and trends from period to period. Note: See pages 4 and 5 for reconciliation of GAAP amounts to adjusted revenues, adjusted earnings from operations and adjusted operating margin. |
UNITEDHEALTH GROUP |
||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||
(in millions, except per share data; unaudited) |
||||||||||
Adjusted Net Earnings Per Share |
||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Projected Year Ended
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
Net earnings attributable to UnitedHealth Group common shareholders |
|
|
|
|
|
|
|
|
|
|
Intangible amortization |
|
426 |
|
392 |
|
1,242 |
|
1,178 |
|
~1,650 |
Tax effect of intangible amortization |
|
(104) |
|
(96) |
|
(305) |
|
(292) |
|
~(410) |
South American impacts |
|
9 |
|
— |
|
8,435 |
|
— |
|
~8,515 |
Tax effect of South American impacts |
|
4 |
|
— |
|
(153) |
|
— |
|
~(175) |
Direct response costs - cyberattack |
|
341 |
|
— |
|
1,710 |
|
— |
|
~2,000 |
Tax effect of direct response costs - cyberattack |
|
(80) |
|
— |
|
(403) |
|
— |
|
~(470) |
Adjusted net earnings attributable to UnitedHealth Group common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
Intangible amortization per share |
|
0.46 |
|
0.42 |
|
1.34 |
|
1.25 |
|
~1.80 |
Tax effect of intangible amortization per share |
|
(0.11) |
|
(0.10) |
|
(0.33) |
|
(0.31) |
|
~(0.45) |
South American impacts per share |
|
0.01 |
|
— |
|
9.07 |
|
— |
|
~9.15 |
Tax effect of South American impacts per share |
|
— |
|
— |
|
(0.17) |
|
— |
|
~(0.15) |
Direct response costs - cyberattack per share |
|
0.37 |
|
— |
|
1.84 |
|
— |
|
~2.15 |
Tax effects of direct response costs - cyberattack per share |
|
(0.09) |
|
— |
|
(0.43) |
|
— |
|
~(0.50) |
Adjusted diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information: Total Cyberattack Impacts |
|
|
|
|
|
|
|
|
|
|
Business disruption impacts (a) |
|
|
|
$— |
|
|
|
$— |
|
|
Tax effect of business disruption impacts (a) |
|
(21) |
|
— |
|
(139) |
|
— |
|
~(165) |
Business disruption impacts, net of tax (a) |
|
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business disruption impacts per share (a) |
|
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cyberattack impacts |
|
|
|
$— |
|
|
|
$— |
|
~2,870 |
Tax effect of total cyberattack impacts |
|
(101) |
|
— |
|
(542) |
|
— |
|
~(635) |
Total cyberattack impacts, net of tax |
|
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cyberattack impacts per share |
|
|
|
$— |
|
|
|
$— |
|
|
(a) |
Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to net earnings. |
Adjusted Net Margin |
||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
Consolidated revenue |
|
|
|
|
South American impacts |
|
— |
|
220 |
Adjusted consolidated revenues |
|
|
|
|
|
|
|
|
|
Net earnings attributable to UnitedHealth Group common shareholders |
|
|
|
|
South American impacts |
|
9 |
|
8,435 |
Tax effect of South American impacts |
|
4 |
|
(153) |
Direct response costs - cyberattack |
|
341 |
|
1,710 |
Tax effect of direct response costs - cyberattack |
|
(80) |
|
(403) |
Adjusted net earnings attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs |
|
|
|
|
|
|
|
|
|
Net margin attributable to UnitedHealth Group common shareholders |
|
6.0 % |
|
3.0 % |
Adjusted net margin attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs |
|
6.3 % |
|
6.2 % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241015234962/en/
Investor Contact:
Zack Sopcak
952-936-7215
zack.sopcak@uhg.com
Media Contact:
Eric Hausman
952-936-3963
eric.hausman@uhg.com
Source: UnitedHealth Group
FAQ
What was UnitedHealth Group's (UNH) revenue in Q3 2024?
How did the cyberattack impact UnitedHealth Group's (UNH) earnings in Q3 2024?
What is UnitedHealth Group's (UNH) full-year 2024 earnings outlook?
How many new consumers did UnitedHealthcare's commercial domestic offerings gain in 2024?
