UnitedHealth Q2 Profit Easily Beats View as Medicare/Medicaid Revenues Soar (UNH)

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Health insurer UnitedHealth Group Inc. ( UNH ) on Tuesday posted second quarter earnings that easily beat analyst expectations, aided by much higher revenues in its government health units.

The Minnetonka, MN-based company reported second quarter net income of $1.12 billion, or 99 cents per share, compared with $859 million, or 73 cents per share, a year earlier.

Revenue rose 7% from last year, to $23.26 billion.

On average, Wall Street analysts expected a much smaller profit of 75 cents per share, on lower revenue of $22.97 billion.

Looking ahead, the company boosted its full-year forecast to a range of $3.40 to $3.60 per share, up from a prior outlook of $3.15 to $3.35 per share.

UnitedHealth Group shares rose 68 cents, or +2.2%, in premarket trading Tuesday.

The Bottom Line
We have avoided shares of UNH since our early June 2008 coverage began, when the stock was trading at $33. The company has a 1.62% dividend yield, based on last night's closing stock price of $30.82. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels. We would remain on the sidelines for now.

UnitedHealth Group Inc. ( UNH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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