UnitedHealth ups 2016 outlook after surprisingly strong 1Q
UnitedHealth hiked its 2016 forecast after the nation's largest health insurer topped Wall Street's first-quarter earnings expectations.
Health insurance is UnitedHealth's main business, but it has been focusing more on growing its Optum business, which provides pharmacy benefits management and technology services and also operates clinics and doctor's offices.
An extra calendar day in this year's quarter and hits from UnitedHealth's public insurance exchange business created a drag on the company's commercial health insurance business, which reported operating earnings of $1.9 billion that were roughly even with last year
Overall, UnitedHealth's net income climbed to $1.61 billion in the first quarter, with adjusted earnings totaling $1.81 per share.
The company said changes in an expected income tax rate and intangible amortization were behind its higher 2016 earnings forecast.