UnitedHealth Group (NYSE:) stock rose 1.5% in pre-market trading on Tuesday after the company announced better-than-expected earnings and sales for the first quarter of 2024.
The health insurance company had earnings per share (EPS) of $6.91, beating the consensus estimate of $6.62. Sales totaled $99.8 billion, also exceeding expectations of $99.26 billion.
UNH said its net loss of $1.53 per share for the quarter was primarily due to currency effects from the previously reported sale of its Brazilian business and costs related to the cyberattack.
The impact of the cyber attack in the quarter was $0.74 per share, and UnitedHealth estimates the total impact in 2024 to be between $1.15 and $1.35 per share.
Looking forward, UnitedHealth Group is providing full-year 2024 guidance and expects adjusted EPS to range from $27.50 to $28.00. This estimate is slightly higher than the consensus estimate of $27.52.
This guidance adjusts for direct response costs related to the cyber attack and the Brazilian divestiture, but includes an estimated $0.30 to $0.40 per share impact from Change Healthcare Services' business interruption.
The company also updated its 2024 net income outlook to a range of $17.60 to $18.20 per share, reflecting the Brazilian divestiture and the estimated cost of direct response to the cyber attack.
“UnitedHealth Group's core story is to respond quickly and effectively to attacks on Change Healthcare, while delivering an improved experience for the people our colleagues serve and achieving balance. We remain committed to driving sustainable growth,” said Andrew Whitty, CEO of UnitedHealth Group.
