) fourth-quarter 2011 earnings came in substantially ahead of the
Zacks Consensus Estimate, led by strong revenue growth from the
UnitedHealthcare and Optum businesses, partially offset by higher
medical costs. The company ended the year 2011 with better
performances in virtually every meaningful metric: membership,
revenues, MLR, operating margins and cash flow.
The company strengthened its key capabilities to respond to the
emerging growth opportunities. These initiatives has been taken to
expand its Medicaid and Medicare business and for growing the
health service business.
Though certain headwinds such as high unemployment, growing medical
cost, pressure from Health Care overhaul, etc. remains, we believe
the company will beat the odds given its diversified business model
with leading market share positions in the Commercial, Medicare and
Medicaid markets. A solid balance sheet and a highly conservative
investment portfolio will further help it to outperform its peers.
UNITEDHEALTH GP (
): Free Stock Analysis Report
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