Economic Performance - The Dow Jones Index is experiencing a significant decline, down 600 points, primarily due to disappointing Q1 earnings from UnitedHealthcare [1] - The S&P 500 and Nasdaq are performing positively, up 25 points and 140 points respectively, while the Dow has dropped 7.65% since April 2nd [2] Job Market - Weekly Jobless Claims remain low at 215K, which is 10K below expectations and 9K lower than the previous week's revised figure [3] - Continuing Claims increased slightly to 1.895 million, up from a revised 1.844 million, indicating stability in the job market [4] Housing Market - Housing Starts for March were reported at 1.324 million units, below the expected 1.41 million, marking the lowest level since November [5] - Building Permits showed a positive trend at 1.482 million units, exceeding expectations and indicating potential future growth in housing starts [6] Manufacturing Sector - The Philly Fed Index reported a significant decline to -26.4, the lowest level in two years, indicating a downturn in regional manufacturing [7] Company Earnings - UnitedHealthcare reported Q1 earnings of $7.20 per share, missing expectations by 7 cents, with revenues of $109.58 billion, down 1.4% from estimates [8] - American Express posted mixed Q1 results with earnings of $3.64 per share, exceeding expectations, while revenues of $16.97 billion fell short [9] - D.R. Horton reported Q2 earnings of $2.58 per share, missing estimates, and revenues of $7.73 billion, also below expectations, leading to a revenue forecast cut [10] - Netflix is expected to report earnings growth of 7.8% and revenue growth of 12.5% after the market close, having performed well year to date [11]

Wall Street plunged on Thursday on the final trading day of the week, with focus on US-Japan tariff talks, while a slump in UnitedHealth’s shares following a forecast cut by the insurer weighed on the Dow.In morning trading, the Dow Jones Industrial Average slid 637 points, or 1.6%, to 39,032. The S&P 500 fell 0.1%, and the Nasdaq was down 0.5%. 3 The Dow tumbled more than 600 points, or 1.6% on Thursday. Getty ImagesAhead of the long weekend, all three major Wall Street indexes are on track for weekly lo ...

Core Insights - UnitedHealth Group reported revenue of $109.58 billion for the quarter ended March 2025, reflecting a year-over-year increase of 9.8% [1] - The earnings per share (EPS) for the quarter was $7.20, up from $6.91 in the same quarter last year, but below the consensus estimate of $7.27, resulting in an EPS surprise of -0.96% [1] Financial Performance - The reported revenue was 1.40% below the Zacks Consensus Estimate of $111.13 billion [1] - The Medical Care Ratio was reported at 84.8%, better than the estimated 85.9% [4] - Total revenues from UnitedHealthcare reached $84.62 billion, exceeding the average estimate of $83.20 billion, with a year-over-year change of +12.3% [4] Customer Metrics - The number of risk-based customers served by UnitedHealthcare was 8.41 million, lower than the average estimate of 9 million [4] - Fee-based customers served totaled 21.59 million, slightly above the average estimate of 21.46 million [4] - Total community and senior customers served was 20.13 million, close to the average estimate of 20.16 million [4] Revenue Breakdown - Investment and other income was reported at $1.03 billion, slightly below the average estimate of $1.06 billion, with a year-over-year change of +2.2% [4] - Product revenues were $13.04 billion, compared to the average estimate of $13.33 billion, reflecting a year-over-year increase of +9.5% [4] - Service revenues were $8.97 billion, below the average estimate of $9.76 billion, with a year-over-year change of +1% [4] - Premium revenues reached $86.53 billion, slightly below the average estimate of $86.94 billion, with a year-over-year increase of +11% [4] - Optum Insight revenues were $4.63 billion, below the average estimate of $5.11 billion, with a year-over-year change of +2.8% [4] - Optum Rx revenues were $35.13 billion, exceeding the average estimate of $34.11 billion, with a year-over-year increase of +13.9% [4] - Optum Health revenues were reported at $25.31 billion, significantly below the average estimate of $28.97 billion, reflecting a year-over-year decrease of -5.3% [4] Stock Performance - UnitedHealth shares have returned +16.3% over the past month, outperforming the Zacks S&P 500 composite, which declined by -6.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - UnitedHealth's shares experienced a historic decline, dropping 20% in morning trading, which resulted in a loss of over $100 billion in market value [1][6] - The company's quarterly earnings report fell significantly short of Wall Street's expectations across revenue, earnings per share, and future earnings outlook [2][3] Financial Performance - UnitedHealth reported $109.6 billion in revenue and $7.20 adjusted earnings per share, both more than 1% below consensus analyst estimates [3] - The company's guidance for adjusted EPS this year is projected between $26 to $26.50, which is over 10% lower than the prior forecast of $29.72 [3] Market Impact - The decline in UnitedHealth's stock heavily impacted the Dow Jones Industrial Average, contributing to a 500-point drop, or 1.3% decrease [4] - UnitedHealth's market capitalization loss is expected to drop it from the 14th to the 18th most valuable company in the U.S. [6] Industry Context - UnitedHealth is the parent company of UnitedHealthcare, which holds a 14% market share in commercial health insurance and a 28% share in Medicare Advantage, both the largest in the industry [8] - The company is currently under a civil fraud investigation by the Department of Justice regarding its Medicare billing practices [9]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

UnitedHealth Group Inc (NYSE:UNH) will announce its first-quarter report before the open tomorrow, April 17. Ahead of the event, Wall Street anticipates earnings of $7.27 per share, a 5.2% increase from the same quarter a year ago, on revenue of $111.01 billion. UNH has been rallying since its late-February bear gap, hitting a nearly four-month high of $606.36 this past Friday. Year-to-date, the equity is up 16.8% despite broad-market pressures, and sits above all moving averages between the 20- and 320-day ...

Core Viewpoint - Analysts forecast Elevance Health (ELV) to report quarterly earnings of $11.09 per share, reflecting a year-over-year increase of 4.2%, with revenues expected to reach $45.93 billion, an increase of 8.7% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 1.5% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts expect 'Revenues- Premiums' to be $38.66 billion, indicating a year-over-year change of +8.3% [4]. - 'Revenues- Service fees' are projected to reach $2.13 billion, reflecting a change of +2.6% from the previous year [5]. - 'Revenues- Net investment income' is expected to be $461.32 million, showing a year-over-year change of -0.8% [5]. - 'Revenues- Product revenue' is anticipated to reach $5.11 billion, indicating a change of +13.6% from the prior year [5]. Membership Metrics - Total Medical Membership is forecasted to be 46.24 million, consistent with the same quarter last year [6]. - 'Medical Membership - Medicare - Medicare Advantage' is expected to reach 2.21 million, up from 2.02 million in the same quarter last year [6]. - 'Medical Membership - Medicaid' is estimated at 8.89 million, down from 9.33 million in the previous year [7]. - 'Medical Membership - Federal Employees Health Benefits' is projected to remain at 1.66 million, unchanged from the year-ago figure [7]. - The consensus for 'Medical Membership - Total Medicare' stands at 3.08 million, up from 2.91 million last year [8]. - 'Medical Membership - Commercial Risk-Based - Individual' is expected to reach 1.42 million, compared to 1.25 million in the same quarter last year [8]. Expense Ratios - The 'Benefit Expense Ratio' is projected to be 87.3%, up from 85.6% in the same quarter last year [9]. - 'Medical Membership - Commercial Fee-Based' is expected to be 27.44 million, slightly down from 27.45 million in the previous year [9]. Stock Performance - Elevance Health shares have increased by +0.4% over the past month, contrasting with the Zacks S&P 500 composite's decline of -4.2% [9].

Core Viewpoint - CVS Health and UnitedHealth Group are two major players in the U.S. healthcare market, both having transformed their business models significantly to offer comprehensive healthcare solutions [1][2]. Performance Comparison - CVS Health has shown a remarkable recovery in 2025, becoming the top performer in the S&P 500 with a year-to-date return of 56%, while UnitedHealth ranks 16th with a 16.5% gain [3]. CVS Health Insights - CVS Health is focusing on margin recovery in its Aetna business, which saw a 23% year-over-year revenue growth in Q4 despite an adjusted operating loss. The company projects $132 billion in healthcare benefits revenues for 2025 and aims for at least $1.5 billion in adjusted operating income [6][7]. - The company is executing a $2 billion multi-year cost efficiency initiative, expecting savings in 2025 to offset rising variable expenses [7]. - CVS Health generated $9.1 billion in operating cash flow in 2024, exceeding expectations, and projects $6.5 billion in cash flow for 2025, indicating strong financial stability [8]. UnitedHealth Group Insights - UnitedHealth faced challenges in 2024, including CMS Medicare rate cuts and a cyberattack, yet it deployed nearly $17 billion in growth capital and returned over $16 billion to shareholders [9]. - For 2025, UnitedHealth expects cash flow from operations to approach $33 billion, indicating robust profitability [10]. - Optum Health's revenues are projected to grow from $105 billion in 2024 to $117 billion in 2025, with a significant increase in patients receiving value-based care [11]. Earnings Projections - The Zacks Consensus Estimate for CVS Health's 2025 earnings per share suggests an 8.7% improvement from 2024 [13]. - The Zacks Consensus Estimate for UnitedHealth's 2025 EPS implies a 7.5% improvement over the previous fiscal year [15]. Valuation Comparison - CVS is trading at a forward P/E of 11.25X, above its 5-year median of 9.25X, while UnitedHealth is at 19.06X, below its 5-year median and high [18][19]. Conclusion - UnitedHealth is currently viewed as a stronger buy due to better margins, cash flow, and a more attractive valuation compared to CVS Health, which is facing challenges with elevated medical costs [21].

Core Insights - The medical sector, particularly health insurance carriers, faced significant challenges in 2024 due to rising utilization costs associated with Medicare Advantage (MA) plans, which negatively impacted profits [1][2] - Despite the difficulties in 2024, health insurers are expected to perform well in 2025, benefiting from tariff-free status and recession resistance [2][3] Humana Inc. - Humana, the second-largest Medicare Advantage plan provider, experienced a stock decline of 46% in 2024, closing at $253.70 on December 31, 2024, but has seen an 11.3% increase year-to-date as of April 14, 2025 [2][3] - The company reported an EPS loss of $2.16 in Q4 2024, although revenues rose 10.4% year-over-year to $29.21 billion, surpassing consensus estimates [7] - Humana's adjusted benefits ratio increased by 120 basis points year-over-year to 91.9%, indicating rising costs [7][8] - The Centers for Medicare and Medicaid Services (CMS) raised MA reimbursement rates by 5.06% for 2026, resulting in an additional $26 billion for MA plan providers, with Humana set to benefit significantly [5][6] - However, Humana faces potential penalties of up to $2 billion due to a drop in Star Ratings, which could reduce net MA revenues to $3.4 billion [6][8] CVS Health - CVS Health has shown a turnaround, with stock prices increasing by 54% year-to-date as of April 14, 2025, and operates a more diversified business model compared to Humana [10][12] - The company reported an EPS of $1.19 in Q4 2024, beating consensus estimates, with revenues rising 4.2% year-over-year to $97.71 billion [13] - CVS Health's MA membership is expected to decline by high-single digits in unprofitable regions, but the 5.06% reimbursement rate increase could lead to an estimated $3 billion increase in 2026 reimbursements [12][17] - The Health Care Benefits segment reported an adjusted operating loss of $439 million, primarily due to higher MA utilization and lowered Star Ratings [13][14] - CVS Health's management aims to restore target margins of 3% to 5% in 2026, supported by the recent reimbursement increase [17]

Analysts on Wall Street project that UnitedHealth Group (UNH) will announce quarterly earnings of $7.27 per share in its forthcoming report, representing an increase of 5.2% year over year. Revenues are projected to reach $111.01 billion, increasing 11.2% from the same quarter last year.The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pro ...