Shares of major healthcare company UnitedHealth Group (New York Stock Exchange: United Nations) fell in the early session today despite the company reporting better-than-expected results for the fourth quarter. Revenue rose 14% year over year to $94.4 billion. This number exceeded estimates by about $2.2 billion. Likewise, EPS of $6.16 beat expectations by $0.17.
During the quarter, Optum’s revenue rose to $59.49 billion from $47.87 billion in the same period last year. Likewise, UnitedHealthcare’s revenue jumped to $70.81 billion from $63.05 billion in the same period a year earlier.
For all of 2023, total revenue rose 15% to $371.6 billion. The company generated cash flows of $29.1 billion from operations for the year. The percentage of medical care was 83.2%, and the percentage of operating costs was 14.7%.
The company expects to complete the sale of its operations in Brazil in the first half of this year. Meanwhile, the company expects an impact to its net earnings outlook from the previously announced expected charge of $7 billion once the sale closes. However, the company reiterated its previous earnings forecast and performance targets for 2024, which were presented at an investor conference in November.
Is the United Nations a good buy now?
The company’s shares have risen nearly 17% over the past six months. Overall, the Street has a strong Buy consensus rating on UnitedHealth, and UNH’s average price target of $591.63 suggests an additional 9.6% potential upside in the stock.
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