UnitedHealth posted better-than-expected profits in the final quarter of 2024, but persistent rises in medical costs and care utilization surprised Wall Street.
The healthcare giant's shares fell on Thursday after it released its first post-war financial report. brazen shooting Comments by one of the company's executives outside a New York City hotel struck a nerve with the public, highlighting Americans' dissatisfaction with access to health care.
UnitedHealth executives opened a call with analysts Thursday to address the condolences the company has received since the Dec. 4 death of Brian Thompson, CEO of UnitedHealthcare operations. He expressed his gratitude.
“Brian helped build this company for more than 20 years, building deep and trusting relationships,” said Chief Financial Officer John Rex. “His positive impact on people will be felt for years to come. It will be felt across the board.”
In the recently ended fourth quarter, more than 87% of UnitedHealth's collected premiums were returned to cover medical costs. TD Cowen analyst Ryan Langston said in a research note that this was “far above” analysts' expectations.
UnitedHealth said it is still dealing with an increase in prescriptions for expensive specialty drugs, lower rates on its federally funded Medicare business and other cost pressures detailed last quarter.
The company's enrollment in state and federally funded Medicaid programs fell by about 400,000 people. UnitedHealth leaders said rate updates from the state to cover costs for the remaining people have been delayed.
UnitedHealth's adjusted operating results for the quarter, excluding one-time items, were $6.81 per share. The company's sales rose about 7% to $100.8 billion, but fell short of expectations.
Analysts had expected sales of $101.6 billion and earnings of $6.73 per share, according to data firm FactSet.
UnitedHealth Group Inc. operates UnitedHealthcare, the nation's largest health insurance company, covering more than 49 million people in the United States. We also operate a large pharmacy benefits manager that operates prescription drug insurance and has a growing business that provides care delivery and technical support.
The company's full-year profits, which have increased every year for nearly a decade, fell 36% to $14.4 billion in 2024. The profits are, in part, large scale cyber attack Change Healthcare business took a hit earlier this year
UnitedHealth is based in Minnetonka, Minn. surprise wall street Early last year, we reported that health care costs would skyrocket in the final quarter of 2023. Weeks later, the company discovered a cyberattack that disrupted its business and added more than $2 billion in direct response costs.
And in early December, thompson He was shot and killed as he walked to the company's annual investor conference in midtown Manhattan. The suspect is 26 years old. Luigi Mangioneis facing federal and state charges in connection with Thompson's death.
The shooting triggered Outpouring of dissatisfaction with insurance companies. a We conducted a survey In the weeks after the shooting, it became clear that most Americans believed that health insurance benefits or coverage denials were somehow to blame for Thompson's death.
Shares of UnitedHealth, a component of the Dow Jones Industrial Average, have fallen about 4% since the beginning of the year following the Thompson shooting.
The stock, which has been rising so far in 2025, fell nearly 5% to $517.76 on Thursday morning. Shares of other healthcare conglomerates, including CVS Health and Cigna, also fell.
