Copyright startribune
UnitedHealth Group’s third quarter profit beat investor expectations and prompted the company to increase its earnings outlook for the year, even though the result reported Tuesday was less than half the earnings seen during the same period last year. The Eden Prairie-based health care giant is trying to restore investors’ confidence after financial results earlier this year fell far short of expectations, leading to a stock price plunge and a management shakeup in May. Rising medical costs and reduced federal funding for Medicare Advantage health plans have hit earnings at the company’s UnitedHealthcare insurance business and clinics operated by Optum, its division for health care services. Between July and September, UnitedHealth Group reported profits of $2.35 billion on revenue of $113.2 billion. The profit was down from $6.06 billion during the same period last year. After adjusting for one time factors, earnings of $2.92 per share were better than the $2.81 expected by analysts. UnitedHealth Group now expects full-year earnings of at least $16.25 per share, up from guidance of at least $16 per share set in July, from its UnitedHealthcare and Optum divisions. UnitedHealthcare is the nation’s largest health insurer. Optum’s clinic network is vast, with about 85,000 physicians employed or working under an affiliation agreement. The company’s recent troubles have extended beyond financial performance.
