- DOJ settlement forces sale of 164 facilities, cutting $528 million in annual revenue.
- Q2 EPS of $4.08 missed $4.95 estimate; revenue was also slightly below the consensus.
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UnitedHealth Group Inc. UNH shares edged up on Monday, even as the stock remains down roughly 49% year to date. Trading volume stood at 6.39 million shares, well below the 100-day average of 20.28 million, according to Benzinga Pro. No fresh catalysts were apparent for Monday's move.
On Friday, UnitedHealth said it would divest more than 160 healthcare facilities as part of a proposed settlement with the U.S. Department of Justice (DOJ) to resolve antitrust concerns surrounding its $3.3 billion acquisition of Amedisys Inc. AMED.
The agreement also includes a $1.1 million civil penalty against Amedisys for providing inaccurate information during the regulatory review process.
Also Read: UnitedHealth Prognosis Mixed: Analysts Trim Targets But Keep Faith After Q2 Miss
The proposed settlement addresses those concerns by requiring UnitedHealth and Amedisys to sell 164 home health and hospice locations across 19 states, including a palliative care facility.
These divestitures represent approximately $528 million in annual revenue and mark the largest outpatient healthcare services divestiture in a merger case by number of facilities.
UnitedHealth reported second-quarter 2025 earnings on Tuesday in July and reestablished its 2025 guidance.
The insurance giant reported adjusted earnings of $4.08, down from $6.80 a year ago, missing the consensus of $4.95.
Revenues increased 13% year over year to $111.62 billion, missing the consensus of $111.69 billion.
UnitedHealth reestablished its fiscal year 2025 guidance, with adjusted earnings of at least $16 per share versus a consensus of $22.33 and sales guidance of $445.5 billion-$448 billion compared to the analyst estimate of $449.5 billion.
Last month, UnitedHealth began complying with the Department's formal criminal and civil requests. The company said it has full confidence in its practices and is committed to working cooperatively with the Department throughout this process.
As per a media report in July, the company could extend its 15-year streak of beating Wall Street earnings expectations in 2024, only with the help of asset sales that analysts later described as unusual and potentially misleading.
Price Action: UNH stock is trading higher by 1.83% to $255.47 at last check Monday.
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