UnitedHealth reports Q2 adjusted EPS $2.46, consensus $2.38
Reports Q2 revenue $50.1B, consensus $50.06B. UnitedHealthcare's withdrawals from ACA Individual markets, combined with the ACA health insurance tax deferral, reduced consolidated second quarter 2017 revenues by approximately $1.8 billion and lowered the revenue growth rate by 4.5 percent. These factors affect comparability of 2017 results with prior periods throughout the financial statements. The second quarter 2017 consolidated medical care ratio of 82.2 percent increased 20 basis points year-over-year, as a 150 basis point increase from the health insurance tax deferral was offset by improved business mix, product performance and favorable reserve development. Medical reserves developed favorably by $200 million in second quarter 2017, compared to unfavorable development of $100 million in second quarter 2016. The second quarter 2017 operating cost ratio of 14.6 percent was flat year-over-year, as the growing mix of revenues from care delivery businesses offset the effect of the health insurance tax deferral. Second quarter 2017 days claims payable of 50 days decreased one day year-over-year, due to ACA Individual market withdrawals, and was stable sequentially. Second quarter days sales outstanding rose one day year-over-year and sequentially to 19 days, due to continued growth in government-based offerings. Optum second quarter 2017 revenues grew year-over-year by $2 billion or 9.9 percent, and operating margins improved 60 basis points year-over-year to 6.7 percent. Second quarter earnings from operations increased by double-digit percentage rates for all reporting segments, and overall earnings from operations grew $259 million or 20.5 percent year-over-year to $1.5 billion.