UNH
$513.61
Unitedhealth Group
($3.85)
(.74%)
Earnings Details
2nd Quarter June 2022
Friday, July 15, 2022 5:55:00 AM
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Summary

Unitedhealth Group Beats

Unitedhealth Group (UNH) reported 2nd Quarter June 2022 earnings of $5.57 per share on revenue of $80.3 billion. The consensus earnings estimate was $5.24 per share on revenue of $79.7 billion. The Earnings Whisper number was $5.33 per share. Revenue grew 12.6% on a year-over-year basis.

The company said it expects 2022 earnings of $21.40 to $21.90 per share. The company's previous guidance was earnings of $21.20 to $21.70 per share and the current consensus earnings estimate is $21.75 per share for the year ending December 31, 2022.

UnitedHealth Group 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.

Results
Reported Earnings
$5.57
Earnings Whisper
$5.33
Consensus Estimate
$5.24
Reported Revenue
$80.33 Bil
Revenue Estimate
$79.68 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

UnitedHealth Group Reports Second Quarter 2022 Results

  • Revenues of $80.3 Billion Grew 13% Year-Over-Year, with Double-Digit Growth at both Optum and UnitedHealthcare
  • Earnings from Operations were $7.1 Billion, Growth of 19% Year-Over-Year
  • Cash Flows from Operations were $6.9 Billion, 1.3x Net Income
  • Earnings were $5.34 Per Share, Adjusted Earnings $5.57 Per Share

MINNETONKA, Minn.--(BUSINESS WIRE)--UnitedHealth Group (NYSE: UNH) reported second quarter 2022 performance led by broad-based growth at Optum and UnitedHealthcare.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220715005098/en/

UnitedHealth Group Corporate Headquarters (Photo: Business Wire)

UnitedHealth Group Corporate Headquarters (Photo: Business Wire)

“Customers are responding as we build on our five growth pillars, enabling us to move into the second half of 2022 with strong momentum serving ever more people more deeply,” said Andrew Witty, chief executive officer of UnitedHealth Group.

Based upon the first half performance and growth expectations, the company increased its full year net earnings outlook to $20.45 to $20.95 per share and adjusted net earnings to $21.40 to $21.90 per share. Growth in the second quarter was balanced across the company’s businesses, driven especially by continued strong expansion in people served at UnitedHealthcare and in value-based arrangements at Optum Health.

Quarterly Financial Performance

 

Three Months Ended

 

 

June 30,

2022

June 30,

2021

March 31,

2022

 

 

Revenues

$80.3 billion

$71.3 billion

$80.1 billion

Earnings from Operations

$ 7.1 billion

$ 6.0 billion

$ 7.0 billion

Net Margin

6.3%

6.0%

6.3%

  • UnitedHealth Group’s second quarter 2022 revenues grew $9 billion or 13% to $80.3 billion year-over-year, reflecting double-digit growth at both Optum and UnitedHealthcare.
  • Second quarter 2022 earnings from operations were $7.1 billion with well-diversified contributions from across the enterprise. Adjusted net earnings of $5.57 per share increased 19% year-over-year.
  • The second quarter 2022 medical care ratio was 81.5% compared to 82.8% last year, due to COVID effects and business mix. Favorable medical reserve development of $890 million compared to $500 million in the year ago second quarter. Days claims payable were 50.6, compared to 49.1 in the first quarter of 2022 and the second quarter of 2021.
  • The second quarter 2022 operating cost ratio of 14.6% compares to 14.5% in 2021, reflecting continued productivity gains, offset by business mix and the investments the company continues to make to support future growth opportunities.
  • Cash flows from operations for the second quarter 2022 were $6.9 billion or 1.3-times net income. The company returned $4 billion to shareholders in the second quarter through dividends and share repurchases and increased the dividend by 14% in June 2022. Return on equity of 27.9% in the quarter reflected the company’s sustained earnings growth 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

 

June 30,

2022

June 30,

2021

March 31,

2022

 

 

Revenues

$62.1 billion

$55.5 billion

$62.6 billion

Earnings from Operations

$ 3.9 billion

$ 3.1 billion

$ 3.8 billion

Operating Margin

6.2%

5.6%

6.1%

  • UnitedHealthcare second quarter revenues of $62.1 billion grew $6.6 billion or 12% year-over-year, reflecting broad-based growth.
  • Second quarter 2022 operating earnings were $3.9 billion compared to $3.1 billion last year, reflecting strong growth in people served and continued medical and operating cost management.
  • Total people served by UnitedHealthcare has grown by over 600,000 in 2022, including 280,000 in the second quarter. Growth was led by UnitedHealthcare’s community-based and senior offerings. The number of people served with domestic commercial benefit offerings has grown by over 250,000 over the past year, including 80,000 in the second quarter.

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

 

 

June 30,

2022

June 30,

2021

March 31,

2022

 

 

Revenues

$45.1 billion

$38.3 billion

$43.3 billion

 

Earnings from Operations

$ 3.3 billion

$ 2.9 billion

$ 3.2 billion

 

Operating Margin

7.3%

7.5%

7.3%

 

  • Optum second quarter revenues of $45.1 billion grew $6.8 billion or 18% year-over-year, with double-digit growth at each business, led by Optum Health. Operating earnings were $3.3 billion compared to $2.9 billion last year.
  • Optum Health revenue per consumer served increased 30% over the year ago period, driven by growth in the number of people served under value-based care arrangements and continued expansion of the care services offered, including in-home, digital, clinic-based and outpatient services.
  • Optum Insight’s revenue backlog increased by $2.3 billion to $23.6 billion compared to a year ago. Growth was driven by comprehensive managed services for health systems and an expanding suite of information technology and data analytics offerings.
  • Optum Rx’s revenue growth of 10% in the second quarter reflects continued success in serving new clients as well as further expansion of pharmacy care services offerings, including specialty and community pharmacy. Adjusted scripts grew to 357 million compared to 342 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 July 29, 2022. The conference call replay can also be accessed by dialing 1-888-203-1112, Conference Code: 5961010. This earnings release and the Form 8-K dated July 15, 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.

UNITEDHEALTH GROUP
Earnings Release Schedules and Supplementary Information
Quarter Ended June 30, 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
June 30,
Six Months Ended
June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues
Premiums

$

63,896

 

$

56,233

 

$

127,966

 

$

111,719

 

Products

 

9,496

 

 

8,433

 

 

18,836

 

 

16,773

 

Services

 

6,645

 

 

6,099

 

 

13,017

 

 

12,017

 

Investment and other income

 

295

 

 

556

 

 

662

 

 

1,008

 

 
Total revenues

 

80,332

 

 

71,321

 

 

160,481

 

 

141,517

 

 
Operating costs
Medical costs

 

52,093

 

 

46,546

 

 

104,616

 

 

91,450

 

Operating costs

 

11,709

 

 

10,359

 

 

23,110

 

 

20,582

 

Cost of products sold

 

8,596

 

 

7,660

 

 

17,083

 

 

15,232

 

Depreciation and amortization

 

802

 

 

778

 

 

1,590

 

 

1,536

 

 
Total operating costs

 

73,200

 

 

65,343

 

 

146,399

 

 

128,800

 

 
Earnings from operations

 

7,132

 

 

5,978

 

 

14,082

 

 

12,717

 

 
Interest expense

 

(467

)

 

(410

)

 

(900

)

 

(807

)

 
Earnings before income taxes

 

6,665

 

 

5,568

 

 

13,182

 

 

11,910

 

 
Provision for income taxes

 

(1,466

)

 

(1,196

)

 

(2,835

)

 

(2,560

)

 
Net earnings

 

5,199

 

 

4,372

 

 

10,347

 

 

9,350

 

 
Earnings attributable to noncontrolling interests

 

(129

)

 

(106

)

 

(250

)

 

(222

)

 
Net earnings attributable to UnitedHealth Group
common shareholders

$

5,070

 

$

4,266

 

$

10,097

 

$

9,128

 

 
Diluted earnings per share attributable to
UnitedHealth Group common shareholders

$

5.34

 

$

4.46

 

$

10.61

 

$

9.55

 

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

$

5.57

 

$

4.70

 

$

11.06

 

$

10.02

 

 
Diluted weighted-average common shares outstanding

 

950

 

 

956

 

 

952

 

 

956

 

(a)See page 6 for a reconciliation of the non-GAAP measure
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
 
June 30,December 31,

2022

2021

Assets
Cash and short-term investments

$

27,964

$

23,907

Accounts receivable, net

 

18,718

 

14,216

Other current assets

 

21,674

 

23,635

 
Total current assets

 

68,356

 

61,758

 
Long-term investments

 

42,427

 

43,114

Other long-term assets

 

119,389

 

107,334

 
Total assets

$

230,172

$

212,206

 
 
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable

$

28,978

$

24,483

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

 

5,592

 

3,620

Other current liabilities

 

54,128

 

50,189

 
Total current liabilities

 

88,698

 

78,292

 
Long-term debt, less current maturities

 

45,799

 

42,383

Other long-term liabilities

 

14,548

 

15,052

Redeemable noncontrolling interests

 

4,922

 

1,434

Equity

 

76,205

 

75,045

 
Total liabilities, redeemable noncontrolling interests and equity

$

230,172

$

212,206

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
Six Months Ended
June 30,

 

2022

 

 

2021

 

Operating Activities
Net earnings

$

10,347

 

$

9,350

 

Noncash items:
Depreciation and amortization

 

1,590

 

 

1,536

 

Deferred income taxes and other

 

200

 

 

113

 

Share-based compensation

 

504

 

 

426

 

Net changes in operating assets and liabilities

 

(451

)

 

120

 

 
Cash flows from operating activities

 

12,190

 

 

11,545

 

 
Investing Activities
Purchases of investments, net of sales and maturities

 

(3,366

)

 

(2,789

)

Purchases of property, equipment and capitalized software

 

(1,212

)

 

(1,130

)

Cash paid for acquisitions, net

 

(7,150

)

 

(4,642

)

Other, net

 

(532

)

 

(648

)

 
Cash flows used for investing activities

 

(12,260

)

 

(9,209

)

 
Financing Activities
Common share repurchases

 

(5,000

)

 

(2,900

)

Dividends paid

 

(2,908

)

 

(2,548

)

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

 

6,162

 

 

4,858

 

Other, net

 

4,996

 

 

1,159

 

 
Cash flows from financing activities

 

3,250

 

 

569

 

Effect of exchange rate changes on cash and cash equivalents

 

57

 

 

6

 

Increase in cash and cash equivalents

 

3,237

 

 

2,911

 

Cash and cash equivalents, beginning of period

 

21,375

 

 

16,921

 

Cash and cash equivalents, end of period

$

24,612

 

$

19,832

 

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES
(in millions, except percentages)
(unaudited)
 
Three Months Ended
June 30,
Six Months Ended
June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues
UnitedHealthcare

$

62,105

 

$

55,474

 

$

124,700

 

$

110,588

 

Optum

 

45,082

 

 

38,303

 

 

88,341

 

 

74,687

 

Eliminations

 

(26,855

)

 

(22,456

)

 

(52,560

)

 

(43,758

)

 
Total consolidated revenues

$

80,332

 

$

71,321

 

$

160,481

 

$

141,517

 

 
Earnings from Operations
UnitedHealthcare

$

3,850

 

$

3,095

 

$

7,648

 

$

7,203

 

Optum (a)

 

3,282

 

 

2,883

 

 

6,434

 

 

5,514

 

 
Total consolidated earnings from operations

$

7,132

 

$

5,978

 

$

14,082

 

$

12,717

 

 
Operating Margin
UnitedHealthcare

 

6.2

%

 

5.6

%

 

6.1

%

 

6.5

%

Optum

 

7.3

%

 

7.5

%

 

7.3

%

 

7.4

%

Consolidated operating margin

 

8.9

%

 

8.4

%

 

8.8

%

 

9.0

%

 
 
Revenues
UnitedHealthcare Employer & Individual - Domestic

$

15,567

 

$

14,942

 

$

31,389

 

$

29,574

 

UnitedHealthcare Employer & Individual - Global

 

2,247

 

 

2,118

 

 

4,380

 

 

4,153

 

UnitedHealthcare Employer & Individual - Total

 

17,814

 

 

17,060

 

 

35,769

 

 

33,727

 

UnitedHealthcare Medicare & Retirement

 

28,625

 

 

25,304

 

 

57,725

 

 

50,778

 

UnitedHealthcare Community & State

 

15,666

 

 

13,110

 

 

31,206

 

 

26,083

 

 
Optum Health

$

17,583

 

$

13,300

 

$

34,265

 

$

25,703

 

Optum Insight

 

3,282

 

 

2,957

 

 

6,501

 

 

5,809

 

Optum Rx

 

24,805

 

 

22,524

 

 

48,716

 

 

44,128

 

Optum eliminations

 

(588

)

 

(478

)

 

(1,141

)

 

(953

)

(a)Earnings from operations for Optum for the three and six months ended June 30, 2022 included $1,399 and $2,765 for Optum Health; $839 and $1,686 for Optum Insight; and $1,044 and $1,983 for Optum Rx, respectively. Earnings from operations for Optum for the three and six months ended June 30, 2021 included $1,128 and $2,090 for Optum Health; $762 and $1,541 for Optum Insight; and $993 and $1,883 for Optum Rx, respectively.
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS
 
 
UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)
 
People ServedJune 30, 2022March 31, 2022December 31, 2021June 30, 2021
 
Commercial - Domestic:
Risk-based

 

8,010

 

7,950

 

7,985

 

7,840

Fee-based

 

18,480

 

18,460

 

18,595

 

18,395

 
Total Commercial - Domestic

 

26,490

 

26,410

 

26,580

 

26,235

 
Medicare Advantage

 

6,945

 

6,890

 

6,490

 

6,385

Medicaid

 

7,990

 

7,810

 

7,655

 

7,130

Medicare Supplement (Standardized)

 

4,355

 

4,355

 

4,395

 

4,390

 
Total Community and Senior

 

19,290

 

19,055

 

18,540

 

17,905

Total UnitedHealthcare - Domestic Medical

 

45,780

 

45,465

 

45,120

 

44,140

 
Commerical - Global

 

5,465

 

5,500

 

5,510

 

5,485

 
Total UnitedHealthcare - Medical

 

51,245

 

50,965

 

50,630

 

49,625

 
 
Supplemental Data
 
Medicare Part D stand-alone

 

3,330

 

3,360

 

3,700

 

3,750

 
 
 
OPTUM PERFORMANCE METRICS
 
June 30, 2022March 31, 2022December 31, 2021June 30, 2021
 
Optum Health Consumers Served (in millions)

 

101

 

100

 

100

 

99

Optum Insight Contract Backlog (in billions)

$

23.6

$

22.8

$

22.4

$

21.3

Optum Rx Quarterly Adjusted Scripts (in millions)

 

357

 

352

 

353

 

342

Note: UnitedHealth Group served 149 million unique individuals across all businesses at June 30, 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
June 30,
Six Months Ended
June 30,
 Projected
Year Ended
December 31,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

GAAP net earnings attributable to UnitedHealth Group common shareholders

$

5,070

 

$

4,266

 

$

10,097

 

$

9,128

 

 $19,400 - $19,975
Intangible amortization

 

292

 

 

305

 

 

573

 

 

599

 

 ~1,200
Tax effect of intangible amortization

 

(72

)

 

(75

)

 

(141

)

 

(146

)

 ~(300)
Adjusted net earnings attributable to UnitedHealth Group common shareholders

$

5,290

 

$

4,496

 

$

10,529

 

$

9,581

 

 $20,300 - $20,875
  
GAAP diluted earnings per share

$

5.34

 

$

4.46

 

$

10.61

 

$

9.55

 

 $20.45 - $20.95
Intangible amortization per share

 

0.31

 

 

0.32

 

 

0.60

 

 

0.63

 

 ~1.25
Tax effect per share of intangible amortization

 

(0.08

)

 

(0.08

)

 

(0.15

)

 

(0.16

)

 ~(0.30)
Adjusted diluted earnings per share

$

5.57

 

$

4.70

 

$

11.06

 

$

10.02

 

 $21.40 - $21.90
  
(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