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MINNETONKA, Minn. (AP) — UnitedHealth hiked its 2016 forecast after a first quarter in which the nation's largest health insurer topped Wall Street earnings expectations and its profit grew by 14 percent.
The Minnetonka, Minnesota, company now expects annual adjusted earnings ranging from $7.75 to $7.95 per share. That's up 15 cents from when it last reaffirmed its outlook in January.
Analysts had been projecting earnings of $7.73 per share, according to FactSet.
The company cited changes in an expected income tax rate and intangible amortization for the outlook increase.
In the year's first quarter, UnitedHealth's net income climbed to $1.61 billion, from $1.41 billion, with adjusted earnings totaling $1.81 per share. That easily beat the per share earnings of $1.72 that Wall Street had expected, according to Zacks Investment Research.
Revenue jumped nearly 25 percent to $44.53 billion.
UnitedHealth is the first insurer to announce earnings every quarter. Many see it as a bellwether for the managed care sector.
Health insurance is UnitedHealth's largest business, but it also operates segments that sell information technology services and pharmacy benefits management. UnitedHealth also is the largest provider of Medicare Advantage plans, which are privately run versions of the government's Medicare program for the elderly and disabled people.
Company shares have increased roughly 9 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed 2.5 percent. The stock has increased 5 percent in the last 12 months.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UNH at http://www.zacks.com/ap/UNH
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Keywords: UnitedHealth Group, Earnings Report, Priority Earnings
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