UnitedHealth has a strong second quarter, but cyberattack keeps it cautious on outlook for the year
UnitedHealth Group topped second-quarter expectations but remained cautious on its outlook for the year as it continued to eat costs from a massive cyberattack to its Change Healthcare business.
The health care giant on Tuesday stuck to its projections of adjusted earnings between $27.50 and $28 in 2024, the same outlook it released in the fall.
Analysts expect earnings of $27.70 per share, according to FactSet.
UnitedHealth typically raises its initial forecast at least once this far into the year. The company’s shares slipped almost 2% in early-morning trading.
UnitedHealth said that outlook included business disruption costs of between 60 cents and 70 cents per share tied to the February attack, which triggered a disruption of payment and claims processing around the country.
In the second quarter, UnitedHealth’s net income slumped 23% to $4.22 billion. It reported adjusted earnings of $6.80 per share on $98.85 billion in revenue.
Analysts expected earnings of $6.66 per share on $98.73 billion in revenue.
Change Healthcare, a subsidiary of UnitedHealth Group, provides technology used to submit and process billions of insurance claims a year. Hackers gained access in February to its system and unleashed a ransomware attack that encrypted and froze large parts of it.
UnitedHealth said Tuesday it has restored the majority of Change services affected by the attack. Total impact from the breach this quarter amounted to 92 cents per share.
UnitedHealth provides health insurance for more than 49 million people in the United States. Its Optum segment also provides care, runs one of the nation’s largest pharmacy benefits management businesses and offers technology services.