UnitedHealth Group Inc. UNH, -0.91 percent saw its stock rise 1.3 percent in premarket trade Thursday after the health-care provider announced second-quarter profit and revenue that above forecasts and improved its full-year projection, despite continuing to expect COVID-19 to eat into profits. The company’s net income dropped to $4.27 billion, or $4.46 per share, from $6.64 billion, or $6.91 per share, in the previous quarter. Adjusted earnings per share fell to $4.70 from $7.12 when nonrecurring expenses were excluded, but it topped the FactSet estimate of $4.43. Premiums revenue jumped 13.8 percent to $56.23 billion, exceeding forecasts of $55.07 billion. Total revenue increased 14.8 percent to $71.32 billion, topping the FactSet average of $69.51 billion. Optum’s revenue increased 17.1% to $38.3 billion. The firm updated its adjusted EPS guidance range for 2021 from $18.10 to $18.60 to $18.30 to $18.80, with the expectation still comprising around $1.80 per share in projected unfavorable COVID-19 effects, such as testing and treatment expenses. The stock has gained 18.3 percent year to date through Wednesday, compared to 13.5 percent for the SPDR Health Care Select Sector ETF XLV, -0.09% and 14.1 percent for the Dow Jones Industrial Average DJIA, +0.13 percent./n
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