UnitedHealth’s stock set to gain after profit and revenue beats, raised outlook

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Shares of UnitedHealth Group Inc. are indicated up slightly in premarket trading Wednesday, after the health care company reported third-quarter profit and revenue that beat expectations and raised its full-year outlook. Net income fell to $3.17 billion, or $3.30 a share, from $3.54 billion, or $3.67 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share fell to $3.51 from $3.88, but was above the FactSet consensus of $3.11. Revenue rose 7.9% to $65.12 billion, beating the FactSet consensus of $63.78 billion. Premiums grew 7.3% to $50.86 billion, above the FactSet consensus of $49.81 billion, and products rose 16.3% to $8.78 billion to beat expectations of $8.23 billion, while services increased 3.7% to $5.12 billion to come up shy of expectations of $5.17 billion. UnitedHealth raised its 2020 adjusted EPS guidance range to $16.50 to $16.75 from $16.25 to $16.55; the FactSet consensus is $16.57. The stock has hiked up 12.7% year to date through Tuesday, while the SPDR Health Care Select Sector ETF has gained 6.3% and the Dow Jones Industrial Average has edged up 0.5%.
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