UnitedHealth Beats on Profit But Continues To Feel Effects of Cyberattack

UnitedHealth Group (UNH) shares precocious Tuesday aft nan large wellness security supplier posted better-than-expected profit connected higher gross from its Optum wellness attraction unit, while adding that nan costs associated pinch a February cyberattack would beryllium greater than antecedently estimated.

The institution reported second-quarter adjusted earnings per stock (EPS) of $6.80, much than anticipated. Revenue was up 6.4% year-over-year to $98.9 billion, successful statement pinch forecasts.

Revenue astatine nan Optum section jumped 11.7% to $62.9 cardinal arsenic it added much patients astatine Optum Health and accrued nan number of customers utilizing its Optum Rx drugstore service. 

Cyberattack Reduced EPS by $0.92

UnitedHealth noted that nan cyberattack against its Change Healthcare section reduced EPS by $0.92, including $0.64 per stock “to support nonstop consequence efforts specified arsenic nan Change Healthcare clearinghouse level restoration and accrued aesculapian attraction expenditures,” and $0.28 because of mislaid gross and costs from nan disruption of nan business.

In February, nan institution announced that Change Healthcare’s accusation exertion systems had been deed pinch "a suspected nation-state associated cyber information threat" that disrupted aesculapian billing and attraction authorization portals.

UnitedHealth affirmed its full-year adjusted EPS outlook of $27.50 to $28.00 that it gave past November, moreover though nan antagonistic effect of nan hack would beryllium $0.60 to $0.70 per share, $0.30 much than its guidance of a $0.30 to $0.40 effect fixed successful nan first quarter.

UnitedHealth Group shares were up 5.9% to $545.65 arsenic of 10:20 a.m. ET Tuesday to move into affirmative territory year-to-date.