UnitedHealth Group Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

UnitedHealth Group (NYSE: UNH) releases its next round of earnings this Tuesday, October 18, 2011. Get prepared with Benzinga's ultimate preview for UnitedHealth Group's third quarter earnings.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of $1.12/share and revenues of $25.42 billion. UnitedHealth Group's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.14/share on revenues of $23.67 billion. We'll have to wait for Tuesday to see if UnitedHealth Group reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of October 12, 2011, UnitedHealth Group's current share price was $46.38. Since January 1st, shares of UnitedHealth Group have given investors a return of 29.7%. For a full 12 months, the return has risen by 40.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for UnitedHealth Group is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how UnitedHealth Group compares to rivals in the same sector? Here are a few of the company's peers.

• Aetna (NYSE: AET): Moderate Buy with a $1.35 recent quarter EPS
• CIGNA (NYSE: CI): Hold with a $1.53 recent quarter EPS
• Centene (NYSE: CNC): Hold with a $0.64 recent quarter EPS
• Coventry Health Care (NYSE: CVH): Hold with a $0.83 recent quarter EPS

The medical-HMO company's industry has seen price/earnings growth of 0.8% during the current fiscal year.

Finally, a description of the company's main areas of operation: UnitedHealth Group designs products, provides services and applies technologies that improve access to health and well-being services.

Take Action:

That's your advanced look at UnitedHealth Group's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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