UnitedHealth Group Inc. (NYSE:UNH) has been gaining investor interest recently. The company released its 1Q2015 results, reporting profits that surpassed the estimates of analysts. The greater part of the profits was reported to have come from the Optum Technology business. The company’s forecast for FY 2015 was also adjusted accordingly. Earning, as per 1Q2015, would be $6.15-$6.30 per share, as compared to the forecast reporting $6.00-$6.25. The net-income also registered an increase of $1.46 a share, compared to an increase of $1.10 for the same period last year. Analysts had estimated this to be just $1.35.
Optum business, which runs under United Health, is known to provide technological and consulting services, apart from managing pharmacy benefits. This particular wing of the company, alone reported $12.8 billion in revenue, which was a 15% increase. Sheryl Skolnick an analyst pointed out that despite the company absorbed the cost of a deal with Catamaran, Optum was still able to produce a monstrous quarter. The deal involved the purchase of Catamaran Corp. by United Health for $12.8 billion. The move was aimed at improving Optum’s pharmacy business by removing its rivals.
Before the deal Catamaran was involved in helping with administration of drugs in health care plans. This involved the company dealing with insurers, employers, drug companies and pharmacies. Before the deal, Optum already employed around 30 million people and the Catamaran deal is set to add another 35 million. The health industry, overall, has been adjusting to the new rules and regulations under ObamaCare. United Health has benefited from an expansion of coverage under these rules. The new rules also mean that profit margins for health care companies would now be lower for government funded programs. United Health has revealed that it plans to report $143 billion in revenues by the end of this year. This would be $2 billion greater than its previous forecast.
UnitedHealth Group Inc. (NYSE:UNH) closed at $121.60, gaining 3.65% on April 16. The company has 954 million shares being traded in the market, with a 52-week range of $73.61-$123.76.
