What factors drive UNH's earnings surprises?

UnitedHealth Group (UNH) experienced an EPS surprise of $0.07, with an estimated EPS of $6.74, and a revenue surprise of -810 million, with an estimated revenue of $101.61 billion. The negative revenue surprise suggests that the actual revenue was below market expectations. Here are the factors that may have contributed to the earnings surprises: |code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code| |---|---|---|---|---|---|---| |UNH|UNH.N|UnitedHealth Group|2024 Q1|3.26E8|0.18|169| |UNH|UNH.N|UnitedHealth Group|2024 Q2|1.8E8|0.13|169| |UNH|UNH.N|UnitedHealth Group|2024 Q3|1.68E9|0.13|169| |UNH|UNH.N|UnitedHealth Group|2024 Q4|-8.1E8|0.07|169| |code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code| |---|---|---|---|---|---|---| |UNH|UNH.N|UnitedHealth Group|2024 Q1|9.9796E10|-1.53|169| |UNH|UNH.N|UnitedHealth Group|2024 Q2|9.8855E10|4.54|169| |UNH|UNH.N|UnitedHealth Group|2024 Q3|1.0082E11|6.51|169| |UNH|UNH.N|UnitedHealth Group|2024 Q4|1.00807E11|5.98|169| 1. **Market Performance and Investor Sentiment**: UNH's stock has underperformed the healthcare sector, dropping 25.7% from its all-time high and remaining below its 50-day and 200-day moving averages since early December. This downturn could be due to factors such as negative news and lawsuits that have impacted investor confidence. 2. **Legal Issues and Investor Relations**: UnitedHealth Group is facing a lawsuit that alleges securities fraud and a wrongful profit-making scheme. The company has denied these allegations, but the legal uncertainty could be impacting investor sentiment and causing volatility in the stock price. 3. **Financial Performance**: Despite the negative revenue surprise, UNH delivered a strong financial performance, with a significant year-over-year growth in total revenues and adjusted earnings. However, missing street expectations by a notable margin can unsettle investor confidence. In conclusion, the earnings surprises for UNH can be attributed to a combination of factors including market performance, legal issues, and financial performance. These factors collectively contribute to the unexpected fluctuations in the company's earnings and revenue.