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