Dive Brief:
- UnitedHealth Group reported decreased earnings for this quarter, but still met analysts' expectations.
- The health insurance giant posted first-quarter net earnings of $1.1 billion, or $1.10 per share. That's a drop from the first quarter of 2013, when it posted earnings of $1.16 per share. But it was still in line with analyst predictions of roughly $0.35 per share being eaten up by ACA-related costs.
- UHG reported total revenue of $31.7 billion for the three months ending March 31, up $1 billion from Q1 2013. Of that number, $28.1 billion came from insurance premiums, compared with $27.2 billion for Q1 2013.
Dive Insight:
It appears UGH is a healthy company on the whole, even though earnings have fallen from the same quarter last year (from $1.2 billion to $1.09 billion). But like most health care businesses, UHG's got some forces working against it, notably a slip in performance by UnitedHealthcare, UHG's main insurance arm. It appears, however, that once the company adjusts to ACA conditions, its slightly dented margin should recover.