The losses were reported following a surprise announcement in late 2015 that UnitedHealthcare, was still working to decide if it will remain in the exchanges after this year ends, and David Wichmann, chief financial officer for the company, said in a conference call Tuesday that the decision still has not been made, reports The Hill. Fourth-quarter revenue increased 30% to $43.6 billion, and full-year revenue for 2015 jumped 20% to $157.1 billion.
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UnitedHealth said that it had $245 million of losses in the fourth quarter on its individual health insurance exchange business and $720 million in losses for the full year.
UnitedHealth Group is the first insurer to report earnings every quarter. The company’s 50 day moving average price is $115.55 and its 200-day moving average price is $117.87.
For fiscal year 2016 (FY16), the company maintained its EPS guidance of $7.6-7.8, the mid-point of which is nearly in line with the $7.72 consensus estimate. Finally, Capital Investment Advisors raised its stake in shares of UnitedHealth Group by 3.4% in the fourth quarter.
UnitedHealth Group closed 2015 with a 19 percent drop in fourth-quarter profit, but the nation’s largest health insurer still topped Wall Street’s expectations thanks in part to growth outside of its insurance business.
The company’s quarterly revenue was strong, which drove the stock price of the company higher.
Separately, TheStreet Ratings has a “buy” rating and score of A- on UnitedHealth. Credit Suisse reaffirmed a buy rating on shares of UnitedHealth Group in a report on Thursday, December 17th.
In November, the company cut its 2015 earnings-per-share forecast to roughly $6.00 a share. Following the completion of the sale, the director now directly owns 67,357 shares in the company, valued at $7,687,454.41.
UnitedHealth Group Incorporated is a health and well-being company.
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While overall revenue for 2015 grew 10 percent, Optum’s revenues grew 42 percent, with strong double-digit percentage revenue growth in each Optum segment, UnitedHealth Group said. UnitedHealthcare provides health care benefits to various customers and markets. The Company’s business platforms have four segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. Optum runs the company’s pharmacy benefits management business, provides technology services and also operates clinics and doctor’s offices.
