UNH
📉 UnitedHealth significantly cut its earnings guidance for the year (from ~$30/share adjusted to $26), citing performance below expectations despite serving more people.
🛠️ Management expressed confidence in addressing the underlying issues aggressively, aiming to return to long-term growth targets (13-16%) by 2026.
🤔 While the stock drop presents a potential opportunity in a historically strong company, caution is advised; further research into the specific problems and recovery plan is recommended before investing.
@bernardodegarcia:
“It seems that UnitedHealth Care Investors… I think it was simply a guidance cut, but I don’t know if, when speaking in their quarterly results, they gave more information. Listen to replay remarks… No, thank you. Revised earnings from 24 to 25, adjusted to 26. Okay. Of course, it doesn’t tell you what they had before. Before, they were adjusted earnings at $30, and now they are at 26. Earnings almost $7… Okay. It continues serving more people but has not met our expectations. We are aggressively focusing on those problems and positioning ourselves for the coming years and returning to our growth of 13-16%. We reviewed our… belief improvement will… management will make significant improvements. Okay, whatever… Okay, okay. Well, I think obviously here you have to read the call. Basically, it tells you as a summary, the company grew to serve more people, but comprehensively… not more people comprehensively, but it hasn’t had a result as we expected, and we are aggressively facing those problems to position ourselves well for the coming years and return to our long-term growth that we have between 13 and 16%. Okay, and that’s it. This drop in earnings reflects… I have no idea. Some indications of care activity, I have no idea. And changes in the profile of Optimum Health Members. Alright… The company believes that these factors are easy to change during the course of this year and also towards 2026. So if you are interested in a company that historically has done fantastically, well maybe it’s there, but well, I would recommend reading exactly what benefits it, what harms it, and why. Maybe someone wants it. Anyway, a possible opportunity, UnitedHealth, right there we commented.”
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