October 15, 2024 - $UnitedHealth (UNH.US)$ shares decreased 8.26% to $555.39 in market trading on Tuesday. Today, the company reported its financial results for the third quarter of 2024. For the quarter, the company's medical loss ratio, which measures the percentage of premiums spent on medical care, was 85.2%. This figure is higher than both the 82.3% reported in the same quarter the previous year and the analysts' estimate of 84.2%.

Q3 2024 Financial Results

The company reported third-quarter 2024 revenues of $100.8 billion, reflecting a year-over-year growth of $8.5 billion. The number of consumers served by its commercial domestic offerings increased by 2.4 million year to date. Third-quarter earnings were $6.51 per share, which included the impacts of a cyberattack. Adjusted earnings were $7.15 per share, accounting for $0.12 in business disruption impacts while excluding $0.28 in direct response costs.

In the third quarter of 2024, the medical care ratio rose to 85.2%, up from 82.3% the previous year. This increase was driven by factors such as CMS Medicare funding reductions, medical reserve development effects, and changes in business and member mix. Additionally, the company did not experience any favorable earnings from medical reserve development during the quarter.

Outlook for Full Year 2024

The company forecasts its 2024 net earnings to be between $15.50 and $15.75 per share, accounting for the South America operations disposition in early 2024 and the effects of a cyberattack on Change Healthcare. The adjusted net earnings remain within the $27.50 to $28.00 range set last year, despite a $0.75 per share impact from disruptions to Change Healthcare services, which increased by about $0.10 per share from last quarter's estimate.