Latest news with #LisaGill
Reuters
2 days ago
- Business
- Reuters
Humana raises annual profit forecast as medical costs stabilize
July 30 (Reuters) - Humana (HUM.N), opens new tab raised its annual profit forecast after beating quarterly estimates on Wednesday, as the U.S. health insurer succeeded in keeping its medical costs in check, in contrast to several of its rivals who recently slashed their expectations. The company said its strong quarterly performance was also driven by better-than-expected membership in individual Medicare Advantage plans and strength in its primary care segment CenterWell. Its shares rose nearly 7% in premarket trading. "Following several reductions to guidance, we think this increase will be received positively, as the company's 2025 repricing actions appear to be having their intended effect," said J.P. Morgan analyst Lisa Gill. Larger competitor UnitedHealth (UNH.N), opens new tab flagged underestimation of medical costs on Tuesday, and also provided a full-year profit forecast that fell short of analysts' already diminished estimates. Humana reported a quarterly medical cost ratio - the percentage of premiums spent on medical care - of 89.7%, up from 88.9% a year earlier, but in line with analysts' estimates of 89.71%. The industry has been battling with stubbornly high costs for the last two years due to increased use of healthcare services across government-backed plans. Humana is the top provider of Medicare Advantage plans under which the U.S. government pays private insurers a set rate to manage healthcare for people aged 65 and older, and those with disabilities. CEO Jim Rechtin said the company was confident in the growth outlook for Medicare Advantage and value-based care. "We feel good about our solid performance in the first half of the year." The health insurer said it remained optimistic that its pricing of the Medicare Advantage plans for 2025 will drive margin improvement. It also expects membership decline in the plans to be lower than previously anticipated. Humana projected full-year profit to be about $17 per share, compared with its previous estimate of about $16.25. Analysts on average were expecting a profit of $16.38 per share, as per LSEG data. For the second quarter, the company earned a profit of $6.27 per share, topping estimates of $5.92.
Business Insider
5 days ago
- Business
- Business Insider
UnitedHealth (UNH) Is About to Report Q2 Earnings on July 29. Here Is What to Expect
UnitedHealth (UNH), one of the prominent players in the health insurance space, is scheduled to announce its second-quarter earnings on July 29. The stock has dropped 43.8% year-to-date, hit by several issues, including the suspension of its guidance, escalating medical costs, and a leadership shakeup that included the sudden departure of its CEO, Andrew Witty. Wall Street analysts expect the company to report earnings per share of $4.48, representing a 34% decrease year-over-year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Meanwhile, revenues are expected to increase by 13% from the year-ago quarter to $111.5 billion, according to data from the TipRanks Forecast page. It's important to note that UNH has an impressive track record with earnings, having exceeded EPS estimates in eight out of the past nine consecutive quarters. On July 24, UnitedHealth Group (UNH) revealed in an SEC filing that it is under formal investigation by the Department of Justice (DOJ) over its Medicare billing practices. The company said it is cooperating with both civil and criminal probes into whether it improperly raised patient diagnoses to secure higher payments from the government. J.P. Morgan analyst Lisa Gill remains optimistic ahead of UnitedHealth's earnings, viewing the DOJ probe as part of a broader industry trend. She maintained an Overweight rating on the stock, expecting a potential rebound despite near-term uncertainty. Analyst's Views Ahead of UNH's Q2 Earnings Heading into the Q2 print, Deutsche Bank analyst George Hill lowered his price target to $328 from $362 but reiterated a Buy rating. The analyst noted that investor sentiment 'has deteriorated significantly' due to a series of unfavorable news. The top-rated analyst lowered his estimates, citing ongoing concerns around Optum Health, the company's healthcare services unit. Also, Leerink Partners analyst Whit Mayo lowered the price target for UNH stock to $340 from $355 and reiterated a Buy rating. He remains 'cautiously optimistic' about the stock heading into Q2 earnings, given the challenging backdrop. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you. Indeed, it currently says that move in either direction. Is UNH a Good Buy Now? Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, five Holds, and one Sell assigned in the last three months. At $348.12, the average UnitedHealth stock price target implies a 23.86% upside potential.
Business Insider
5 days ago
- Business
- Business Insider
J.P. Morgan Weighs In on UnitedHealth Stock Amid DOJ Scrutiny
UnitedHealth (NYSE:UNH) stock slipped again on Thursday, a familiar pattern in what's shaping up to be a rough year. Shares have tumbled 44% year-to-date, weighed down by a string of negative developments, including disappointing Q1 results, a CEO change, the suspension of guidance, and rising costs tied to UHC's Medicare Advantage members. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Thursday's 5% drop was driven by renewed scrutiny over an ongoing legal matter. UNH disclosed that it had proactively reached out to the DOJ following a February Wall Street Journal report revealing a civil investigation into its Medicare Advantage risk-coding practices. In its latest filing, the company confirmed that it is now responding to formal civil and criminal inquiries, has launched its own internal review, and remains cooperative with CMS audits. UNH also pointed to a favorable March ruling from a Special Master in a separate, long-running DOJ civil case as a sign of how past challenges have played out. This shift from 'unaware' in February to 'proactively cooperating' now isn't surprising to J.P. Morgan analyst Lisa Gill, who views the company's engagement as part of a broader defense of its practices. 'While we are not lawyers,' Gill noted, 'we note that if the court were to view this case similarly to previous ones brought forth by DOJ regarding the False Claims Act (FCA), we believe that this would place the burden of proof on the DOJ to prove improper coding.' Though the investigation has added another layer of uncertainty, Gill contextualizes it within broader industry trends. The analyst points to risk-adjustment programs like RADV and regulatory updates like V28 as ongoing efforts to refine coding practices across the Medicare Advantage landscape. Viewed through that lens, the current probes may ultimately reflect how companies have adapted, rather than acted improperly. Still, Gill acknowledges the ambiguity facing investors. The company's filing offers limited detail, and any legal proceedings stemming from the DOJ's inquiries are likely to be drawn out. Much could hinge on the outcome of the ongoing DOJ-backed civil case – one in which the Special Master recently recommended dismissal due to lack of evidence, though the DOJ has challenged that recommendation. In the meantime, Gill is looking ahead to next week's earnings call for added clarity, and remains optimistic. The analyst assigns UNH an Overweight (i.e., Buy) rating and $418 price target, suggesting the stock could rebound by 48% over the next 12 months. (To watch Gill's track record, click here) And she's not alone. 17 other analysts share Gill's bullish outlook, while 5 remain on the sidelines and just one is bearish. Altogether, the stock carries a Moderate Buy consensus rating. The average price target stands at $348.12, implying a ~24% upside from current levels. (See UNH stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Reuters
17-07-2025
- Business
- Reuters
Elevance's forecast cut magnifies medical cost woes for US health insurers
July 17 (Reuters) - Elevance (ELV.N), opens new tab lowered its annual profit forecast and missed Wall Street estimates for quarterly earnings on Thursday, becoming the latest health insurer to be hurt by persistently high medical costs. The company kicked off quarterly earnings for U.S. health insurers, a spot usually taken by industry bellwether UnitedHealth Group (UNH.N), opens new tab. Health insurers have come under pressure from tougher regulations and rising costs. Government-focused plans are under strain due to funding pressures, while Medicaid costs are rising without adequate state rate adjustments. UnitedHealth, which is expected to report earnings on July 29, already cut its annual profit forecast in May, citing higher demand for medical care in government-backed plans. Forecast cuts from peers Centene (CNC.N), opens new tab and Molina Healthcare (MOH.N), opens new tab followed soon due to a similar trend from members in state and federally-funded Medicaid plans as well as in so-called Obamacare. Elevance on Wednesday said it sees annual adjusted profit of about $30 per share, compared with $34.15 to $34.85 per share it previously expected. analyst Lisa Gill said the forecast cut was largely in the range that investors were expecting going into the quarter. Shares of Elevance were down 1% in premarket trading, partially recovering from an initial slump of as much as 9%. Elevance forecast full-year medical loss ratio, a closely watched metric which tracks medical costs, to be about 90%, reflecting the ongoing industry-wide trend of higher costs on Medicaid and Obamacare plans. For the quarter, Elevance reported a medical loss ratio, the percentage of premiums spent on medical care, of 88.9% compared to analysts' estimates of 88.70%. Elevance banks more on commercial and Medicaid health plans, which cover medical expenses for people with low income with about 19.1% of its members coming from Medicaid as of June 30.
Yahoo
25-06-2025
- Business
- Yahoo
JPMorgan Raised the PT on UnitedHealth Group (UNH), Keeps a Buy Rating
UnitedHealth Group Incorporated (NYSE:UNH) is one of the 10 Best and Cheap Stocks to Buy Now. On June 19, JPMorgan analyst Lisa Gill raised the firm's price target on UnitedHealth Group Incorporated (NYSE:UNH) from $405 to $418, while keeping a Buy rating on the stocks. Analyst Lisa Gill noted that the firm revised its price target after meeting with the management. JPMorgan expects UnitedHealth Group Incorporated (NYSE:UNH) to manage enrollment in Medicare Advantage as it sees the company exiting unprofitable plans in 2026. As a result, the analyst expects lower Medicare Advantage enrollment rates in 2025 and 2026. A senior healthcare professional giving advice to a patient in a clinic. Gill noted that if the company can reach the lower end of its 3% to 5% margin target range in this segment, it will provide a meaningful upside against the current earnings estimate. However, JPMorgan's base case does not expect the company to reach that low-end margin target in 2026, although management has expressed that aspiration. UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company that provides a range of health insurance and related products. It operates through two main segments including UnitedHealthcare and Optum. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
