United health group Q2 profits jump 155%, 859 million

[Spytheweb]

How many people had to be denied/die for them to make this kind of money? And this was with fewer people enrolled.

UnitedHealth Group Q2 Profit Jumps 155% 22 Jul 2009 Health care company UnitedHealth Group Inc. said Tuesday that its second quarter profit more than doubled from last year, but its health insurance enrollment continued to decline amid the economic recession. The Minnetonka, Minnesota-based company reported second quarter net income of $859 million, or 73 cents per share, compared with only $337 million, or 27 cents per share, in the year-ago period. Last year?s results included a pretax charge of $922 million, or 47 cents per share, however. http://www.nasdaq.com/newscontent/20090721/unitedhealthgroupq2profitjumps155unh.aspx?storyid=1395

http://www.rumormillnews.com/cgi-bin/forum.cgi?read=151625

 

[ferdville]

Okay, some profits may be out of line, like wages of athletes, entertainers, etc. But let me ask you this Spy, do you work for a private company or government? If you work for a private company and it lost money regularly, how long would you have your job? It isn't voodoo economics. Ethics are a whole other question. But if companies don't make money they do go out of business and that hurts people too.

 

[DOGS THAT BARK]

Actually if you counted last years 47 cent write off they earned 1 penny less.

They continuely con you Spy--don't they.
Maybe they can find an ins company that made 3 cents a share last year and 12 cents this year and shoot you the old--
"Big Bad Ins Co Quadruples profits"
<TABLE cellSpacing=1 cellPadding=2 width="100%" border=0><TBODY><TR><TD colSpan=2>Here is their statement

Income Statement
</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Revenue (ttm):</TD><TD class=yfnc_tabledata1>1.87B</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Revenue Per Share (ttm):</TD><TD class=yfnc_tabledata1>32.668</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Qtrly Revenue Growth (yoy):</TD><TD class=yfnc_tabledata1>7.60%</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Gross Profit (ttm):</TD><TD class=yfnc_tabledata1>1.84B</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">EBITDA (ttm):</TD><TD class=yfnc_tabledata1>190.82M</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Net Income Avl to Common (ttm):</TD><TD class=yfnc_tabledata1>83.53M</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Diluted EPS (ttm):</TD><TD class=yfnc_tabledata1>1.36</TD></TR><TR><TD class=yfnc_tablehead1 width="75%">Qtrly Earnings Growth (yoy):</TD><TD class=yfnc_tabledata1>0.60%</TD></TR></TBODY></TABLE>


UnitedHealth Group Q2 Profit Jumps 155% (UNH)

Created by Dividend.com


Health care company UnitedHealth Group Inc. (ENH ) said Tuesday that its second quarter profit more than doubled from last year, but its health insurance enrollment continued to decline amid the economic recession.
The Minnetonka, Minnesota-based company reported second quarter net income of $859 million, or 73 cents per share, compared with only $337 million, or 27 cents per share, in the year-ago period. Last year?s results included a pretax charge of $922 million, or 47 cents per share, however.
Revenue jumped 7% in the latest quarter to $21.66 billion from $20.27 billion, helped by higher premiums and price increases.
On average, Wall Street analysts expected a lower profit of 70 cents per share, but on slightly higher revenue of $21.77 billion.
UnitedHealth Q2 Earnings Breakdown

• Investment income fell 36% to $153 million.
• Commercial health insurance enrollment fell 6% from last year, and 2% sequentially.
• Total enrollment fell 2% from last year to 32.1 million.
• Medical care ratio rose to 84.2% from 83.8% last year.

Looking ahead, UnitedHealth raised the low end of its 2009 earnings guidance. The company now sees profits of $3 to $3.15 per share for the full-year 2009, compared with a prior forecast of $2.90 to $3.15 per share. Analysts currently expect $3.07 for the year.
UnitedHealth shares rose 67 cents, or +2.7%, in morning trading Tuesday.
The Bottom Line
We have avoided shares of UNH since our June coverage began last year and the shares were trading at $33.01. The company has a low dividend yield of .12%, based on last night’s closing stock price of $24.84. The stock has technical support in the $20 price area. If the shares can continue its recent momentum, we see overhead resistance at the $28-$30 price levels. We would remain on the sidelines for now.
UnitedHealth Group Inc. (ENH ) is not recommended at this time, holding a Dividend.com DARS? Rating of 3.3 out of 5 stars.

 

[Trench]

Actually if you counted last years 47 cent write off they earned 1 penny less.

Yeah, you would see it that way.

The bottom line is that while their enrollment went down 2%, their revenue went up 7% due to higher premiums and price increases. You don't have to be a Wall Street analyst to see who's getting the short straw here.

As Uncle Walter used to say... "And that's the way it is".

 

[Chadman]

Yeah, I love it when Wayne tries to get all "investment" on us, in explaining how tough things were for this company that enjoyed tremendous profits. I noticed what you bolded, which I don't think matter as much as this, which you neglected to bold:

Revenue jumped 7% in the latest quarter to $21.66 billion from $20.27 billion, helped by higher premiums and price increases.

UnitedHealth Q2 Earnings Breakdown
Investment income fell 36% to $153 million.
Commercial health insurance enrollment fell 6% from last year, and 2% sequentially.
Total enrollment fell 2% from last year to 32.1 million.

So, the true picture is, their revenue jumped 7% thanks to higher insurance premiums to customers, and price increases on other products and services. I'd guess this to be consistent for many moons now, costs have been going up for a long time, in increasing amounts. This won't change without healthcare reform, and you want to protect them, for some reason.

The only reason they didn't make billions more THIS QUARTER, is because their investment income was down 36%, just like most people. Luckily for them, and their shareholders, they could just charge more for medical policy holders, and for everything they do. 7% this quarter, to be exact. How many businesses do you know that can afford to run an ongoing business and charge people 7% more each quarter? Only one that can name their own price and not have any regulation on them. Do you think their products and services were 7% better this quarter? Do you think they would have lowered their prices if their investment income was better? I think we know the answers to these questions, right?

And they have fewer people enrolling and using their services - why? Because they are more expensive, and they are charging people a helluva lot more for health care - just like all health care providers that some seem to want to protect these days.

I guess I just see this picture differently than you do, Wayne. But keep up the good big business corporate protectionist fight... and we don't need any healthcare reform... as long as these people are looking out for us, right? They simply don't have any reason to be competitive, to answer to anyone, or to care about anything except profits. Is that really healthy for all of us, and worth protecting at all cost?

 

[ferdville]

Maybe we need more "CZARS" to oversee every business to make sure they don't make too much profit. That way they will have no reason to expand their businesses and provide more jobs. Better that they all go out of business and their employees and suppliers lose their jobs.

 

[Spytheweb]

Expect health care premiums to go up 8% on average in 2009, about the same as this year. It marks the sixth straight year that the rise in premium hikes has slowed or held steady after peaking in 2003 at 14%.

But premium increases will accelerate into double digits in 2010 and beyond. Medical costs are going up at a faster pace after slowing for years because of concerted containment efforts, such as improved medical management of high-cost patients and generic substitution of prescription drugs.

http://www.kiplinger.com/businessre...h_care_premiums_to_rise_next_year_080711.html

 

[Spytheweb]

Maybe we need more "CZARS" to oversee every business to make sure they don't make too much profit. That way they will have no reason to expand their businesses and provide more jobs. Better that they all go out of business and their employees and suppliers lose their jobs.

America will get a single payer universal health system. It will crush the insurance companies. This will not happen in the next few years so in the mean time 14,000 a day lose health coverage and many Americans will die. More Americans than Al Qaeda could ever hope to kill and Americans are doing it to themselves.

Businesses can't compete with other countries' businesses who have universal health which they have lower overhead costs and a healthier work force. Unless all US businesses sell burgers and hotdogs. Does America make anything anymore? I saw a Black and Decker blender in Walmart, good American name, huh? MADE IN CHINA!!!

 

[Chadman]

Maybe we need more "CZARS" to oversee every business to make sure they don't make too much profit. That way they will have no reason to expand their businesses and provide more jobs. Better that they all go out of business and their employees and suppliers lose their jobs.

Maybe we do? I don't know. Let me ask you this, then, Ferd. Do you have an issue with where healthcare costs are going? Do you mind them going up 8% PER QUARTER (not year, per quarter) indefinitely? This is not like most businesses, there is not really any option other than paying or not getting service when you need it. I think I read where United Healthcare serves something like 70% of the citizens of this country, in one way or another. And that's free market competition? That's good for U.S. citizens? If you are fine with this, good for you. I'm having a very hard time with it - especially now that I am into a few months of paying COBRA insurance rates and not knowing where my next plan will come from.

Seems to me about all conservatives or libertarians want to do about many of these issues is just to say, we can't do anything about it now, we have to fix the economy first. And nothing can be done that's attached to the Government, for gawd sakes...the government is evil, as we all know. No solutions, just ripping anything that is brought up that might actually help some people, and not just poor people or illegal aliens. The middle class, for example.

 

[Chadman]

Of course, before skully and francis jump on me, I was kidding about most of his post, just a rhetorical comment... of course I don't think we need that across all business, nor would it be a good thing. Some businesses, though, that have exclusive holds on huge segments of the economy, and our personal pocketbooks? Maybe. They certainly are not in the business to help us first, are they? Unless we are a board member or shareholder, that is.

 

[DOGS THAT BARK]

Expect health care premiums to go up 8% on average in 2009, about the same as this year. It marks the sixth straight year that the rise in premium hikes has slowed or held steady after peaking in 2003 at 14%.

But premium increases will accelerate into double digits in 2010 and beyond. Medical costs are going up at a faster pace after slowing for years because of concerted containment efforts, such as improved medical management of high-cost patients and generic substitution of prescription drugs.

http://www.kiplinger.com/businessre...h_care_premiums_to_rise_next_year_080711.html

I'd say the 8% is good very close Spy--I'd like to see this admin start telling us about the cost saving measures they've come up with.Every admin promises but none produce.

I tell you aspect I hit on before that I would like to see them force ins co to get rid of and that is risk factor rating.

Generally in the 8% you mention they have a trending factor they establish each quarter that is factored in on everyone--to this some companies add a risk rating--that take into consideration claims paid on individual.

IMO it borders larceny to take a person who applied when healthy and when he has claim/condition that will be ongoing to raise his premium for condition. This would be an area that needs attention. It defeats purpose of insurance (combining and averaging all risks).