UnitedHealth's quarterly profit, revenue beats
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[April 18, 2017] (Reuters)
- UnitedHealth Group Inc, the largest U.S.
health insurer, reported a better-than-expected quarterly revenue and
profit, driven by strength in its pharmacy benefit management business.
UnitedHealth, which has pulled out of virtually all Obamacare
individual markets, is the first health insurer to report its
results a month after legislation to overhaul the U.S. healthcare
system was pulled by Republican leaders.
The Republicans' failure to repeal Obamacare, at least for now,
means it remains federal law. President Donald Trump and Republicans
have promised to repeal and replace the law.
UnitedHealth, which sells employer-based insurance as well as
Medicare and Medicaid, said net earnings attributable rose to $2.17
billion, or $2.23 per share, in the first quarter ended March 31,
from $1.61 billion, or $1.67 per share, a year earlier.
Excluding items, the company earned $2.37 per share, beating average
analysts' estimate of $2.17, according to Thomson Reuters I/B/E/S.
Revenue rose 9.4 percent to $48.73 billion, above estimates of 48.35
The company now expects 2017 revenue of about $200 billion and
adjusted net earnings of $9.65-$9.85 per share, up from previous
estimate of revenue of $197 billion-$199 billion and adjusted
earnings of $9.30-$9.60 per share.
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UnitedHealth's withdrawal from Obamacare individual markets,
combined with the 2017 health insurance tax deferral, reduced
consolidated first quarter 2017 revenues by about $1.6 billion, the
(Reporting by Ankur Banerjee in Bengaluru; Editing by Shounak
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