UnitedHealth Group hiked its 2019 forecast again after the addition of hundreds of clinics to its health care services business contributed to a better-than-expected third quarter.
The nation’s largest health insurance provider said Tuesday that it now expects full-year earnings of between $14.90 and $15 per share, which is up from a forecast range of between $14.70 and $14.90 that it provided in July.
Analysts expect earnings of $14.83 per share, according to FactSet.
UnitedHealth provides health insurance for more than 49 million people but also has been expanding well beyond that focus through its Optum segment. In June, the company completed a $5 billion deal to buy DaVita Medical Group clinics, as part of its push to expand deeper into providing care.
The company’s OptumHealth revenue jumped 34% in the quarter to $8.1 billion, also fueled by an expansion of behavioral health services.
Overall the insurer’s earnings jumped 11% in the quarter to $3.54 billion. Earnings, adjusted for one-time gains and costs, were $3.88 per share, which is 8 cents better than Wall Street was expecting, according to a survey of analysts by Zacks Investment Research.
Total revenue grew 7% to $60.35 billion, also topping projections.
Shares of the Minnetonka, Minnesota, company climbed nearly 2% to $224.17 in early trading. But the stock was down about 11% so far this year, as of Monday’s close.