UnitedHealth Q4 Earnings Beat Street View, Reaffirms FY22 Outlook

UnitedHealth Group Inc UNH reported Q4 revenues of $73.7 billion, up 12.6% Y/Y and beating the consensus of $72.75 billion, led by continued broad-based growth across the enterprise.

• Adjusted EPS of $4.48 surpassed the consensus of $4.31.
• The company generated an FY21 operational cash flow of $22.3 billion or 1.3x net income.
• The FY21 medical care ratio was 82.6% compared to 79.1% a year ago, increasing due to higher COVID-19 costs and the repeal of the health insurance tax.
• Days claims payable of 46.8 days compared to 47.8 days at year-end 2020.
• FY21 operating cost ratio of 14.8% decreased from 16.2% in 2020 due to the repeal of the health insurance tax, COVID-19 effects, and productivity advances, offset by business mix and investments.
• UnitedHealthcare segment Q4 revenues grew 12% to $56.4 billion compared to last year, with operating earnings of $2.1 billion compared to $396 million last year.
• Optum segment sales were up 14.5% to $41.1 billion, and operating earnings rose 9.6% to $3.4 billion.
• Optum Health served 100 million people at year-end 2021, compared to 98 million a year ago. Revenue per consumer served for FY21 increased 33%.
• Guidance: UnitedHealth affirmed the 2022 growth and performance objectives, including revenues of $317 billion - $320 billion (compared to consensus of $317.27 billion) and cash flows from operations of $23 billion - $24 billion. 
• The company forecasts adjusted EPS of $21.10 - $21.60 (vs. consensus of $21.65). 
• Price Action: UNH shares traded higher by 1.09% at $466.00 in the premarket session on the last check Wednesday.