UnitedHealth Group (NYSE: UNH), a leading healthcare and well-being company, in January 2025, announced its financial results for the fourth quarter and full year of 2024 earnings call transcripts. The company demonstrated diversified growth across its two core segments, UnitedHealthcare and Optum, despite facing challenges such as rising medical care costs and a significant cyberattack on Change Healthcare.
UnitedHealth Group (NYSE: UNH) Financial Highlights
In 2024, UnitedHealth Group reported revenues of $400.3 billion, marking an 8% year-over-year increase. Expanded services across the enterprise primarily drove this growth.
- Earnings from operations for the year stood at $32.3 billion, with adjusted earnings from operations at $34.4 billion, excluding direct response costs from the cyberattack and losses from South American operations.
- Net earnings per share for the full year were $15.51, while adjusted net earnings per share reached $27.66.
- Cash flows from operations are $24.2 billion, representing 1.6 times net income.
For Q4 2024, the company reported:
- Revenues of $100.8 billion are up from $94.4 billion in Q4 2023.
- Net earnings per share of $5.98 and adjusted net earnings per share of $6.81.
UnitedHealth Group’s Overall Performance
UnitedHealth Group continued to expand its reach across healthcare services while addressing market challenges.
- UnitedHealthcare, the company’s health benefits division, grew its consumer base by 2.1 million in 2024, reflecting strong demand for its healthcare plans.
- Medicare and Medicaid services saw mixed performance, with Medicaid membership moderating to 7.4 million due to Medicaid redetermination processes. However, the company expanded state partnerships in Michigan, Idaho, Nevada, and Georgia to drive future growth.
- Optum, the company’s health services arm, experienced strong performance, with revenues reaching $253 billion, a 12% year-over-year increase. Optum Rx and Optum Health drove this growth by adding 600,000 new value-based care patients in 2024.
- Optum Rx processed 1.62 billion adjusted scripts, a 15% increase, driven by new and expanded client relationships.
- Despite strong revenue growth, the company faced challenges, including an increase in the Medical Care Ratio (MCR) to 85.5% from 83.2% in 2023, due to Medicare funding reductions and shifting member mix.
- The cyberattack on Change Healthcare resulted in $2.2 billion in direct response costs and contributed to a 1% revenue decline in Optum Insight.
Positive Sentiments
Despite challenges, UnitedHealth Group showed strong financial growth in 2024. The company increased revenue and earnings, proving its success in expanding healthcare access. It also generated $24.2 billion in cash flow, showing efficient operations. Optum added 600,000 new patients to its value-based care model, improving access to affordable, high-quality care. UnitedHealthcare also grew its consumer base by 2.1 million, showing strong demand for its health plans and services.
Negative Sentiments & Challenges
While UnitedHealth Group delivered a strong financial performance in 2024, it faced several challenges that impacted its operations. The Medical Care Ratio (MCR) rose to 85.5%, up from 83.2% in 2023, primarily due to CMS’s Medicare funding reductions, changes in member mix, and the timing of Medicaid redeterminations. Additionally, the cyberattack on Change Healthcare resulted in $2.2 billion in direct response costs, affecting the company’s overall financial performance. The attack also disrupted Optum Insight’s operations, leading to a 1% revenue decline and $867 million in lost revenue, further highlighting the complexities and risks associated with cybersecurity threats in the healthcare industry.
Looking Ahead: 2025 Outlook
UnitedHealth Group reaffirmed its 2025 financial guidance, expecting:
- Revenues between $450 billion and $455 billion.
- Net earnings per share between $28.15 and $28.65.
- Adjusted net earnings per share between $29.50 and $30.00.
- Cash flows from operations range between $32 billion and $33 billion.
Final Thoughts
UnitedHealth Group (NYSE: UNH) delivered strong revenue growth and operational efficiency in Q4 2024 earnings call transcripts, despite dealing with higher medical costs and cyberattack-related challenges. The company’s ability to expand its consumer base, increase value-based care adoption, and maintain strong cash flows positions it well for continued success in 2025.