Shares of healthcare giant UnitedHealth Group (New York Stock Exchange:UNH) fell in early trading today, even though the company reported better-than-expected fourth-quarter results. Sales increased 14% from the same period last year to $94.4 billion. This figure exceeded expectations by nearly $2.2 billion. Similarly, EPS of $6.16 beat expectations by $0.17.
During the quarter, Optum's revenue increased to $59.49 billion from $47.87 billion in the year-ago period. Similarly, United Healthcare's revenue also increased from $63.05 billion in the same period last year to $70.81 billion.
Full-year 2023 total revenue increased 15% to $371.6 billion. The company generated operating cash flow of $29.1 billion for the year. Additionally, the medical expense ratio is 83.2% and the business expense ratio is 14.7%.
The company expects the sale of its Brazilian operations to be completed in the first half of this year. At the same time, the company expects previously announced expected costs of $7 billion to impact its net income outlook once the sale process is complete. However, the company confirmed its pre-adjusted earnings forecast and 2024 performance targets announced at its November investor meeting.
Is UNH a good place to buy now?
The company's stock price has risen nearly 17% over the past six months. Overall, the Street consensus rating for UnitedHealth is a Strong Buy, and UNH's average price target of $591.63 suggests the stock could move up an additional 9.6%.
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