No coverage for this crash: UnitedHealth drops 18% on earnings shock

Core Viewpoint - UnitedHealth's stock experienced a significant decline of 19.17% in the first hour of trading following its latest earnings report, which underperformed analyst expectations for both revenue and earnings per share (EPS) [1][3][4]. Financial Performance - UnitedHealth reported revenue of $109.58 billion, missing the expected $111.60 billion, and an EPS of $7.20, below the anticipated $7.29 [3]. - The company significantly lowered its EPS guidance for 2025, now expecting it to be between $26 and $26.50, down from a previous range of $29.50 to $30 [4]. Market Impact - The sharp decline in UnitedHealth's stock negatively affected the broader healthcare sector, with other companies experiencing significant drops in their stock prices [8]. - Humana saw a decline of 8.97% to $260.76, while Cigna Group remained relatively stable with a minor decrease of 0.07% [9]. Investor Sentiment - The scale of UnitedHealth's stock drop reflects low confidence among traders regarding the sustainability of high valuations in major U.S. companies, amidst concerns about consumer confidence and potential recession [7].