Key Takeaways
- UnitedHealth Group shares jumped in pre-market trading Tuesday after the company reported first-quarter results that surpassed analyst estimates.
- Tuesday's report was the first since the healthcare giant was the victim of a cyberattack earlier this year that disrupted some of its operations.
- The company said it has provided over $6 billion in advance funding and interest-free loans to support care providers.
UnitedHealth Group (UNH) shares jumped over 7% in pre-market trading Tuesday after the company reported first-quarter results that surpassed analyst estimates, despite a cyberattack that disrupted some of its ope🐷rations.
The healthcare giant reported an 8% year-over-year rise in revenue to $99.8 billion, but posted a loss of $1.22 billion in the quarter, largely due to the impact of a cyberattack and a $7 billion charge related to the sale of the company's operations in Brazil, which was 澳洲幸运5官方开奖结果体彩网:announced late last year.
Adjusting for that $7 billion one-time charge and the hundreds of millions related to the company's response to the cyberattack that disrupted some of its operations starting in February, UnitedHealth posted an 澳洲幸运5官方开奖结果体彩网:adjusted profit of $6.43 billion for the quarter or $6.91 per share. Revenue, adjusted net income, and adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) all beat analyst♓ estimates compiled b👍y Visible Alpha.
"The company continues to make significant progress in restoring the affected Change Healthcare services while providing financial support to impacted health care providers," United said in a statement. "To date, the company has provided over $6 billion in advance funding and interest-free loans to support care providers in need." In March, the company said it had provided over $2 billion to its care providers.
The cyberattack also had an impact on 澳洲幸运5官方开奖结果体彩网:UnitedHealth's medical loss ratio, which is the 澳洲幸运5官方开奖结果体彩网:percentage of premiums a health insuඣrer pays out to cover claims, with a higher ratio indicating less room for the company to make a profit. UnitedHealth's medical care ratio as it refers to the metric was 84.3% in the first quarter, up from 82.2% in the year-ago quarter because of the cyberattack, as well as "revenue effects of the ♛Medicare funding reductions," UnitedHealth said.
UnitedHealth shifted its full-year EPS to $17.60 to $18.20 🐼per share to account for the costs of the Brazil sale and cyberattack, while maintaining its full-year🥀 adjusted EPS projection of $27.50 to $28.
UnitedHealth stock tumbled earlier this year as 澳洲幸运5官方开奖结果体彩网:reports emerged that the company was the subjec🌄t of a Department of J🧸ustice (DOJ) antitrust probe.
UnitedHealth shares were up 7.9% at $481.10 in pre-market trading after its earnings report was released. They've lost about 18% of their value since the start of the year.