UnitedHealth Q3 earnings to be revealed soon; analysts stay bullish, but is it the right time to buy?

UnitedHealth Group Incorporated (UNH) is all set to reveal its earnings for the third quarter on Tuesday, 28 October. Sharewise reported that investors are putting their faith in the health insurance company's Q3 earnings report, raising the stock just a day ahead of D-Day.

Investors, including Warren Buffett, seem positive about Q3 earnings, especially as the company’s former CEO returns to his role, as per Reuters. Stephen Hemsley took over as the CEO in May this year. He previously led the company from 2006 to 2017. This time, he has signed a three-year contract.

UNH Q3 earnings: What to expect?

Given the market conditions and investors’ trust in the share, it seems as if Q3 earnings will be reported on a high note. According to a TradingView report, the company had a successful last quarter, having met all its revenue expectations.

In the previous quarter, UNH reported a 12.9% year-on-year growth. Its revenue growth was reported at $111.6 billion. For this quarter, the analysts are expecting a 12.4% year-on-year growth. This is a significant improvement, as compared to the same quarter last year, with a 9.2% increase recorded. The earnings are thus expected to come at $2.81 per share.

Last week, Bloomberg reported about the company testing its new AI system, aimed at making medical billing quicker and easier, taking away hassle and frustration for doctors as well as patients. The system is going to be called Optum Real and will help the medical staff to understand if a claim will be approved or not when submitted.

UNH Q3 earnings: Is it safe to invest?

Analysts have shared a positive outlook for the stocks ahead of the Q3 earnings reveal. As per TipRanks, analyst Ryan Langston from TD Cowen has maintained a Hold rating and expressed optimism over the health company’s long-term margin recovery.

Another analyst, David Windley from Jeffries, has suggested a Buy rating, raising the price target from $317 to $409. Analyst Erin Wright from Morgan Stanley has also maintained a Buy rating on the stock, with a target price of $395.

FAQs

When will UnitedHealth (UNH) release its Q3 earnings?

UNH will announce its Q3 earnings on Tuesday, 28 October.

What are analysts expecting for UNH’s Q3 performance?

Analysts expect a 12.4% YoY revenue growth and $2.81 EPS.

Who recently returned as CEO of UnitedHealth?

Stephen Hemsley returned as CEO in May under a three-year contract.