UnitedHealth Group (UNH) Plunges 17.58% on Earnings Miss

Generated by AI AgentAinvest Movers Radar
Friday, Apr 18, 2025 4:18 am ET1min read

On April 18, 2025,

experienced a significant drop of 17.58% in pre-market trading, marking a substantial decline in its stock price.

UnitedHealth Group's stock price plummeted due to the release of its first-quarter earnings report, which fell short of analysts' expectations. The company reported an adjusted earnings per share of $7.20, below the anticipated $7.29. Additionally, UnitedHealth Group revised its full-year earnings guidance downwards, from a previous range of $29.50 to $30 per share, to a new range of $26 to $26.50 per share. This revision was attributed to higher-than-expected medical costs, particularly in its Medicare Advantage business, where the utilization of medical services was double the anticipated rate. The company also noted an increase in the frequency of doctor visits and hospital outpatient services, leading to more expensive follow-up treatments.

In response to these challenges, UnitedHealth Group's CEO, Andrew Witty, acknowledged the "unusual and unacceptable" performance and assured stakeholders that the company is taking proactive measures to address these issues. The CEO emphasized the company's commitment to better forecasting and managing these factors in the future.

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