Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at UnitedHealth (NYSE:UNH) and its peers.
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 11 health insurance providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q4: UnitedHealth (NYSE:UNH)
Serving individuals, employers, and government programs like Medicare and Medicaid, UnitedHealth (NYSE:UNH) offers health insurance plans that cover medical, dental, and vision needs.
UnitedHealth reported revenues of $100.8 billion, up 6.8% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.
“The people of UnitedHealth Group remain focused on making high-quality, affordable health care more available to more people while making the health system easier to navigate for patients and providers, positioning us well for growth in 2025,” said Andrew Witty, chief executive officer of UnitedHealth Group.
The stock is down 14.2% since reporting and currently trades at $466.01.
Is now the time to buy UnitedHealth? Access our full analysis of the earnings results here, it’s free.
Best Q4: Cencora (NYSE:COR)
The result of the 2001 merger between AmeriSource Health and Bergen Brunswig, Cencora (NYSE:COR) supplies pharmaceuticals and healthcare services to hospitals, pharmacies, clinics, and other facilities.
Cencora reported revenues of $81.49 billion, up 12.8% year on year, outperforming analysts’ expectations by 5.2%. The business had a very strong quarter with a narrow beat of analysts’ full-year EPS guidance estimates and a decent beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 1% since reporting. It currently trades at $254.23.
Is now the time to buy Cencora? Access our full analysis of the earnings results here, it’s free.
Progyny (NASDAQ:PGNY)
Founded in 2008, Progyny (NASDAQ:PGNY) provides fertility and family-building benefits solutions, integrating technology and personalized care to support individuals and employers in managing reproductive healthcare.
Progyny reported revenues of $298.4 million, up 10.6% year on year, exceeding analysts’ expectations by 7.6%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
As expected, the stock is down 3.7% since the results and currently trades at $22.
Read our full analysis of Progyny’s results here.
Molina Healthcare (NYSE:MOH)
Founded in 1980 as a clinic for underserved California residents, Molina Healthcare (NYSE:MOH) provides health insurance to individuals and families who are eligible for government-sponsored programs such as Medicare (elderly) and Medicaid (low-income).
Molina Healthcare reported revenues of $10.5 billion, up 16% year on year. This print topped analysts’ expectations by 1.9%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ full-year EPS guidance estimates.
The company lost 63,000 customers and ended up with a total of 5.54 million. The stock is down 4% since reporting and currently trades at $304.69.
Read our full, actionable report on Molina Healthcare here, it’s free.
Elevance Health (NYSE:ELV)
Known for its Blue Cross and Blue Shield brand, Elevance Health (NYSE:EVH) is a health insurance company formerly known as Anthem.
Elevance Health reported revenues of $45.44 billion, up 6.6% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it produced a slight miss of analysts’ full-year EPS guidance estimates and customer base in line with analysts’ estimates.
The company lost 26,000 customers and ended up with a total of 45.73 million. The stock is up 1.8% since reporting and currently trades at $397.93.
Read our full, actionable report on Elevance Health here, it’s free.
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