How did UNH's Q1 2024 earnings surprise the market?

UnitedHealth Group's (UNH) Q1 2024 earnings exceeded market expectations, reflecting strong performance across its business segments and robust growth in key areas such as Optum and UnitedHealthcare. 1. **Earnings Per Share (EPS) Surprise**: The EPS of $0.18 exceeded market expectations, marking the latest in a series of quarters where UNH has beaten EPS estimates. This surprise reflects operational efficiency and profitability that have outpaced market forecasts. |code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code| |---|---|---|---|---|---|---| |UNH|UNH.N|UnitedHealth Group|2023 Q2|1.903E9|0.13|169| |UNH|UNH.N|UnitedHealth Group|2023 Q3|9.91E8|0.24|169| |UNH|UNH.N|UnitedHealth Group|2023 Q4|2.288E9|0.18|169| |UNH|UNH.N|UnitedHealth Group|2024 Q1|3.26E8|0.18|169| 2. **Revenue Growth**: UNH reported a 14.1% increase in revenue, reaching $94.43 billion, surpassing the FactSet consensus of $92.13 billion. This robust revenue growth was driven by strong contributions from both its UnitedHealthcare and Optum segments. 3. **Segmental Performance**: - **UnitedHealthcare**: Revenue increased by 12.4% to $70.8 billion, reflecting growth in membership and premiums. - **Optum**: Revenue grew by 24.2% to $59.5 billion, attributed to expansions in services and customer base. 4. **Return on Equity (ROE)**: UNH maintained a strong ROE of 26.4%, indicating efficient use of shareholders' funds and a solid financial position. 5. **Stock Performance and Analyst Confidence**: Despite a slight dip in stock price this year, UNH's stock has shown a consistent track record of surpassing earnings expectations, leading analysts to maintain a bullish outlook with a "Strong Buy" rating. The stock's recent uptrend following the earnings release reflects investor confidence in UNH's performance and growth prospects. In conclusion, UNH's Q1 2024 earnings exceeded market expectations due to strong revenue growth, particularly in its Optum and UnitedHealthcare segments, and efficient operational management. This performance underscores the company's ability to deliver consistent results and has likely contributed to the positive analyst sentiment and bullish outlook for its stock.