UnitedHealth Group Incorporated (NYSE:UNH) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year
The full-year results for UnitedHealth Group Incorporated (NYSE:UNH) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of US$257b and statutory earnings per share of US$16.03. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on UnitedHealth Group after the latest results.
View our latest analysis for UnitedHealth Group
Taking into account the latest results, the most recent consensus for UnitedHealth Group from 19 analysts is for revenues of US$278.9b in 2021 which, if met, would be a notable 8.4% increase on its sales over the past 12 months. Per-share earnings are expected to rise 8.2% to US$17.35. In the lead-up to this report, the analysts had been modelling revenues of US$278.2b and earnings per share (EPS) of US$17.43 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$396, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic UnitedHealth Group analyst has a price target of US$462 per share, while the most pessimistic values it at US$329. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await UnitedHealth Group shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UnitedHealth Group's past performance and to peers in the same industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 8.4%, in line with its 9.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.1% per year. So although UnitedHealth Group is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$396, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for UnitedHealth Group going out to 2025, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with UnitedHealth Group , and understanding these should be part of your investment process.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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