UNH
$485.73
Unitedhealth Group
$7.18
1.50%
Earnings Details
1st Quarter March 2022
Thursday, April 14, 2022 5:55:00 AM
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Summary

Unitedhealth Group Misses

Unitedhealth Group (UNH) reported 1st Quarter March 2022 earnings of $5.49 per share on revenue of $80.1 billion. The consensus earnings estimate was $5.40 per share on revenue of $78.6 billion. The Earnings Whisper number was $5.56 per share. Revenue grew 14.2% on a year-over-year basis.

The company said it now expects 2022 earnings of $21.20 to $21.70 per share. The company's previous guidance was earnings of $21.10 to $21.60 per share and the current consensus earnings estimate is $21.69 per share for the year ending December 31, 2022.

UnitedHealth Group Inc designs products, provides services and applies technologies that improve access to health and well-being services, simplify the health care experience and make health care more affordable.

Results
Reported Earnings
$5.49
Earnings Whisper
$5.56
Consensus Estimate
$5.40
Reported Revenue
$80.15 Bil
Revenue Estimate
$78.55 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

UnitedHealth Group Reports First Quarter 2022 Results

  • Revenues of $80.1 Billion Grew $10 Billion or 14% Year-Over-Year, with Double-Digit Growth at both Optum and UnitedHealthcare
  • Earnings from Operations were $7 Billion
  • Cash Flows from Operations were $5.3 Billion
  • Earnings were $5.27 Per Share, Adjusted Earnings $5.49 Per Share

MINNETONKA, Minn.--(BUSINESS WIRE)--Strong and well-balanced growth continued across UnitedHealth Group (NYSE: UNH) in the first quarter of 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220414005287/en/

UnitedHealth Group Corporate Headquarters (Photo: Business Wire)

UnitedHealth Group Corporate Headquarters (Photo: Business Wire)

“Disciplined execution of our long-term strategy, with a sharp focus on ensuring access to care for the people we serve, enabled us to deliver high-quality, diversified growth across Optum and UnitedHealthcare during this first quarter of 2022,” said Andrew Witty, chief executive officer of UnitedHealth Group.

Based upon the first quarter performance and enterprise-wide growth outlook, the Company increased its full year net earnings outlook to $20.30 to $20.80 per share and adjusted net earnings to $21.20 to $21.70 per share.

Quarterly Financial Performance

 

Three Months Ended

 

 

March 31,

2022

March 31,

2021

December 31,

2021

 

 

Revenues

$80.1 billion

$70.2 billion

$73.7 billion

Earnings from Operations

$ 7.0 billion

$ 6.7 billion

$ 5.5 billion

Net Margin

6.3%

6.9%

5.5%

  • UnitedHealth Group’s first quarter 2022 revenues grew $10 billion or 14.2% to $80.1 billion year-over-year, including diversified, double-digit growth at both Optum and UnitedHealthcare.
  • First quarter 2022 earnings from operations were $7 billion and adjusted net earnings were $5.49 per share. Year-over-year earnings growth was led by Optum Health, due to its positive impact for patients and the accelerating expansion of its value-based care delivery initiatives.
  • The first quarter 2022 medical care ratio was 82% compared to 80.9% last year, due to COVID effects and business mix. Favorable medical reserve development of $290 million compared to $1 billion in the year ago first quarter. Days claims payable were 49.1, compared to 46.8 in the fourth quarter 2021 and 49.8 in the first quarter 2021.
  • The first quarter 2022 operating cost ratio of 14.2% decreased from 14.6% in 2021 due to COVID effects and continued productivity advances, partially offset by business mix and the investments the Company continues to make to accelerate and support future growth opportunities.
  • Cash flows from operations for the first quarter 2022 were $5.3 billion or 1-times net income. The Company returned $3.9 billion to shareholders in the first quarter through dividends and share repurchases. Return on equity of 27.8% in the quarter reflected the Company’s consistent and diverse earnings profile and efficient capital structure.

UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience and reducing the total cost of care.

Quarterly Financial Performance

 

Three Months Ended

 

March 31,

2022

March 31,

2021

December 31,

2021

 

 

Revenues

$62.6 billion

$55.1 billion

$56.4 billion

Earnings from Operations

$ 3.8 billion

$ 4.1 billion

$ 2.1 billion

Operating Margin

6.1%

7.5%

3.8%

  • UnitedHealthcare first quarter revenues of $62.6 billion grew $7.5 billion or 13.6% year-over-year reflecting broad-based growth.
  • In the first quarter of 2022, UnitedHealthcare grew to serve 1.5 million more people than a year ago, led by continued strong growth in Medicare Advantage and Dual Special Needs Plans and in the broader Medicaid market. UnitedHealthcare’s expanding portfolio of innovative, new offerings for people served by commercial benefits, including physician-led, consumer-tailored and virtual-first products, grew by 350,000 people over the past year.
  • First quarter 2022 operating earnings were $3.8 billion compared to $4.1 billion last year, reflecting strong growth in people served and revenue, and continued effective medical and operating cost management. The year ago result reflects the effects of pandemic-disrupted care patterns.

Optum’s health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics, technology and clinical insights, Optum helps improve overall health system performance: optimizing care quality, reducing care costs and improving the consumer experience.

Quarterly Financial Performance

 

Three Months Ended

 

 

March 31,

2022

March 31,

2021

December 31,

2021

 

 

Revenues

$43.3 billion

$36.4 billion

$41.1 billion

 

Earnings from Operations

$ 3.2 billion

$ 2.6 billion

$ 3.4 billion

 

Operating Margin

7.3%

7.2%

8.3%

 

  • Optum first quarter revenues grew 18.9% to $43.3 billion and operating earnings grew 19.8% to $3.2 billion.
  • Optum Health revenue per consumer served increased 33% over the year ago quarter, driven by growth of people served under value-based care arrangements. Optum Health now expects to serve 600,000 new patients under such arrangements in 2022 compared to its initial outlook of 500,000. The results reflect the continued expansion of care services offered, with at-home and digital offerings complementing and integrating with growing clinic-based and outpatient services, including ambulatory surgical care.
  • Optum Insight’s revenue backlog increased by $2 billion to $22.8 billion compared to a year ago, driven by strong growth and execution in its expanding comprehensive managed services offerings for health systems. The breadth of services offered by Optum Insight continues to advance in areas such as payment integrity, digital modernization and care coordination.
  • Optum Rx’s robust revenue growth of 11% in the first quarter reflects continued advancements in serving new, large health plan clients and further expansion of community-behavioral, specialty pharmacy and e-commerce services. Adjusted scripts grew to 352 million compared to 329 million last year.

About UnitedHealth Group

UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow @UnitedHealthGrp on Twitter.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company’s website (www.unitedhealthgroup.com). Following the call, a webcast replay will be available on the same site through April 28, 2022. The conference call replay can also be accessed by dialing 1-888-203-1112, Conference Code: 3063505. This earnings release and the Form 8-K dated April 14, 2022, can also be accessed from the Investor Relations page of the Company’s website.

Non-GAAP Financial Information

This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities law. The words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: risks associated with public health crises, large-scale medical emergencies and pandemics, such as the COVID-19 pandemic; our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; failure to protect proprietary rights to our databases, software and related products; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to develop and deliver innovative products to health care payers and expand access to virtual care; changes in or challenges to our public sector contract awards; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; failure to attract, develop, retain, and manage the succession of key employees and executives; the impact of potential changes in tax laws and regulations (including any increase in the U.S. income tax rate applicable to corporations); failure to achieve targeted operating cost productivity improvements; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our goodwill and intangible assets; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock. This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

 
UNITEDHEALTH GROUP
 
Earnings Release Schedules and Supplementary Information
Quarter Ended March 31, 2022
 
- Condensed Consolidated Statements of Operations
 
- Condensed Consolidated Balance Sheets
 
- Condensed Consolidated Statements of Cash Flows
 
- Supplemental Financial Information - Businesses
 
- Supplemental Financial Information - Business Metrics
 
- Reconciliation of Non-GAAP Financial Measure
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
  
Three Months Ended
March 31,

 

2022

 

 

 

2021

 

Revenues 
Premiums

$

64,070

 

 

$

55,486

 

Products

 

9,340

 

 

 

8,340

 

Services

 

6,372

 

 

 

5,918

 

Investment and other income

 

367

 

 

 

452

 

  
Total revenues

 

80,149

 

 

 

70,196

 

  
Operating costs 
Medical costs

 

52,523

 

 

 

44,904

 

Operating costs

 

11,401

 

 

 

10,223

 

Cost of products sold

 

8,487

 

 

 

7,572

 

Depreciation and amortization

 

788

 

 

 

758

 

  
Total operating costs

 

73,199

 

 

 

63,457

 

  
Earnings from operations

 

6,950

 

 

 

6,739

 

  
Interest expense

 

(433

)

 

 

(397

)

  
Earnings before income taxes

 

6,517

 

 

 

6,342

 

  
Provision for income taxes

 

(1,369

)

 

 

(1,364

)

  
Net earnings

 

5,148

 

 

 

4,978

 

  
Earnings attributable to noncontrolling interests

 

(121

)

 

 

(116

)

  
Net earnings attributable to UnitedHealth Group 
common shareholders

$

5,027

 

 

$

4,862

 

  
Diluted earnings per share attributable to 
UnitedHealth Group common shareholders

$

5.27

 

 

$

5.08

 

  
Adjusted earnings per share attributable to 
UnitedHealth Group common shareholders (a)

$

5.49

 

 

$

5.31

 

  
Diluted weighted-average common shares outstanding

 

954

 

 

 

957

 

  
  

(a) See page 6 for a reconciliation of the non-GAAP measure

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
  

March 31,

 

December 31,

 

2022

 

 

2021

Assets 
Cash and short-term investments

$

28,396

 

$

23,907

Accounts receivable, net

 

18,871

 

 

14,216

Other current assets

 

21,762

 

 

23,635

  
Total current assets

 

69,029

 

 

61,758

  
Long-term investments

 

42,353

 

 

43,114

Other long-term assets

 

109,856

 

 

107,334

  
Total assets

$

221,238

 

$

212,206

  
  
Liabilities, redeemable noncontrolling interests and equity 
Medical costs payable

$

28,676

 

$

24,483

Short-term borrowings and current maturities of long-term debt

 

6,697

 

 

3,620

Other current liabilities

 

52,797

 

 

50,189

  
Total current liabilities

 

88,170

 

 

78,292

  
Long-term debt, less current maturities

 

40,796

 

 

42,383

Other long-term liabilities

 

14,625

 

 

15,052

Redeemable noncontrolling interests

 

1,519

 

 

1,434

Equity

 

76,128

 

 

75,045

  
Total liabilities, redeemable noncontrolling interests and equity

$

221,238

 

$

212,206

  
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
  
Three Months Ended
March 31,

2022

 

 

2021

 

Operating Activities 
Net earnings

$

5,148

 

 

$

4,978

 

Noncash items: 
Depreciation and amortization

 

788

 

 

 

758

 

Deferred income taxes and other

 

178

 

 

 

286

 

Share-based compensation

 

299

 

 

 

256

 

Net changes in operating assets and liabilities

 

(1,094

)

 

 

(273

)

  
Cash flows from operating activities

 

5,319

 

 

 

6,005

 

  
Investing Activities 
Purchases of investments, net of sales and maturities

 

(1,632

)

 

 

(1,714

)

Purchases of property, equipment and capitalized software

 

(555

)

 

 

(568

)

Cash paid for acquisitions, net

 

(1,231

)

 

 

(1,193

)

Other, net

 

(255

)

 

 

(232

)

  
Cash flows used for investing activities

 

(3,673

)

 

 

(3,707

)

  
Financing Activities 
Common share repurchases

 

(2,500

)

 

 

(1,650

)

Dividends paid

 

(1,363

)

 

 

(1,181

)

Net change in short-term borrowings and long-term debt

 

2,048

 

 

 

2,907

 

Other, net

 

4,119

 

 

 

711

 

  
Cash flows from financing activities

 

2,304

 

 

 

787

 

  
Effect of exchange rate changes on cash and cash equivalents

 

157

 

 

 

(51

)

  
Increase in cash and cash equivalents

 

4,107

 

 

 

3,034

 

  
Cash and cash equivalents, beginning of period

 

21,375

 

 

 

16,921

 

  
Cash and cash equivalents, end of period

$

25,482

 

 

$

19,955

 

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES
(in millions, except percentages)
(unaudited)
  
Three Months Ended
March 31,

 

2022

 

 

 

2021

 

Revenues 
UnitedHealthcare

$

62,595

 

 

$

55,114

 

Optum

 

43,259

 

 

 

36,384

 

Eliminations

 

(25,705

)

 

 

(21,302

)

  
Total consolidated revenues

$

80,149

 

 

$

70,196

 

  
Earnings from Operations 
UnitedHealthcare

$

3,798

 

 

$

4,108

 

Optum (a)

 

3,152

 

 

 

2,631

 

  
Total consolidated earnings from operations

$

6,950

 

 

$

6,739

 

  
Operating Margin 
UnitedHealthcare

 

6.1

%

 

 

7.5

%

Optum

 

7.3

%

 

 

7.2

%

Consolidated operating margin

 

8.7

%

 

 

9.6

%

  
  
Revenues 
UnitedHealthcare Employer & Individual - Domestic

$

15,822

 

 

$

14,632

 

UnitedHealthcare Employer & Individual - Global

 

2,133

 

 

 

2,035

 

UnitedHealthcare Employer & Individual - Total

 

17,955

 

 

 

16,667

 

UnitedHealthcare Medicare & Retirement

 

29,100

 

 

 

25,474

 

UnitedHealthcare Community & State

 

15,540

 

 

 

12,973

 

  
Optum Health

$

16,682

 

 

$

12,403

 

Optum Insight

 

3,219

 

 

 

2,852

 

Optum Rx

 

23,911

 

 

 

21,604

 

Optum eliminations

 

(553

)

 

 

(475

)

  
(a)Earnings from operations for Optum for the three months ended March 31, 2022 and 2021 included $1,366 and $962 for Optum Health; $847 and $779 for Optum Insight; and $939 and $890 for Optum Rx, respectively.
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS
 
 
UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)
 
People ServedMarch 31,
2022
December 31,
2021
March 31,
2021
 
Commercial - Domestic:
Risk-based

7,950

7,985

7,860

Fee-based

18,460

18,595

18,455

 
Total Commercial - Domestic

26,410

26,580

26,315

 
Medicare Advantage

6,890

6,490

6,335

Medicaid

7,810

7,655

6,975

Medicare Supplement (Standardized)

4,355

4,395

4,390

 
Total Community and Senior

19,055

18,540

17,700

Total UnitedHealthcare - Domestic Medical

45,465

45,120

44,015

 
Commercial - Global

5,500

5,510

5,460

 
Total UnitedHealthcare - Medical

50,965

50,630

49,475

 
 
Supplemental Data
 
Medicare Part D stand-alone

3,360

3,700

3,795

OPTUM PERFORMANCE METRICS
   
March 31,
2022
 December 31,
2021
 March 31,
2021
   
Optum Health Consumers Served (in millions)

 

100

 

 

100

 

 

99

Optum Insight Contract Backlog (in billions)

$

22.8

 

$

22.4

 

$

20.8

Optum Rx Quarterly Adjusted Scripts (in millions)

 

352

 

 

353

 

 

329

Note: UnitedHealth Group served 148 million unique individuals across all businesses at March 31, 2022.
UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in millions, except per share data)
(unaudited)
 
ADJUSTED NET EARNINGS PER SHARE(a)
 
Three Months Ended
March 31,
Projected
Year Ended
December 31,

 

2022

 

 

2021

 

2022

GAAP net earnings attributable to UnitedHealth Group common shareholders

$

5,027

 

$

4,862

 

$19,250 - $19,825
Intangible amortization

 

281

 

 

294

 

~1,130
Tax effect of intangible amortization

 

(69

)

 

(71

)

~(280)
Adjusted net earnings attributable to UnitedHealth Group common shareholders

$

5,239

 

$

5,085

 

$20,100 - $20,675
 
GAAP diluted earnings per share

$

5.27

 

$

5.08

 

$20.30 - $20.80
Intangible amortization per share

 

0.29

 

 

0.31

 

~1.20
Tax effect per share of intangible amortization

 

(0.07

)

 

(0.08

)

~(0.30)
Adjusted diluted earnings per share

$

5.49

 

$

5.31

 

$21.20 - $21.70
 
 
(a)Adjusted net earnings per share is a non-GAAP financial measure. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Adjusted net earnings per share excludes from the relevant GAAP metric, as applicable, intangible amortization and other items, if any, that do not relate to the Company's underlying business performance. Management believes that the use of adjusted net earnings per share provides investors and management useful information about the earnings impact of acquisition-related intangible asset amortization. As amortization fluctuates based on the size and timing of the Company’s acquisition activity, management believes this exclusion provides a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company’s revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share.

 

Investor Contact:
Zack Sopcak
Senior Vice President
952-936-7215
zack.sopcak@uhg.com

Media Contact:
Matt Stearns
Senior Vice President
202-276-0085
matt.stearns@uhg.com

Source: UnitedHealth Group