UnitedHealth (UNH) stocks acquired a crater as 19% on Thursday as first-quarter revenues missed expectations, and the company cut its annual profit guidance and reduced Blue Chip Dow Jones Industry Average (^DJI).
Health insurance giant I’m looking forward to it now Adjusted full-year earnings ranged from $26-$26.50 per share; Previous predictions To allow the adjusted EPS to fall between $29.50 and $30.
The company reduced forecasts considering higher costs than planned related to the Medicare Advantage business.
According to Bloomberg consensus estimates, United Health reported an adjusted profit of $7.27 in the first quarter, against earnings per share of $7.27 and revenue of $100 billion and $109.6 billion.
10:12:09 AM EDT. Market open.
In a statement, UnitedHealth CEO Andrew Witty said the company “we are actively dealing with it in order to position us well over the next few years as it has not met our expectations.”
UnitedHealth said activity in the Medicare Advantage business is “far better than the planned increase this year, consistent with the levels seen in 2024.
Last year, the company increased its medical ratio, or the amount of premiums paid in medical expenses, at 85.5%, a sharp increase from 83.2% the previous year.
United said that Annual Report This ratio was driven higher as a result of the profit effects of Medicare funding cuts, among other factors.
Their resourcefulness led them to call the results “unusual and unacceptable” in a revenue call with analysts on Thursday morning.
The company also said changes in Optum Health Membership with “a greater impact than the current and new complex patient impacts of ongoing Medicare funding cuts enacted by previous administrations” would weigh 2025 profits.
“We are clearly unhappy with these results, but the foundations for our growth and improvement remain strong,” Whitty said.
This story will be updated.
Laura Bratton is a reporter for Yahoo Finance. Follow her at Bluesky @laurabratton.bsky.social. Email her to laura.bratton@yahooinc.com.
For more detailed analysis including the latest stock market news and moving inventory events, click here
Read the latest financial and business news from Yahoo Finance
