Close attention will be paid today as UnitedHealth Group reports its fourth quarter earnings, according to the Wall Street Journal. Not because of the numbers: United seems to be doing just fine with the analyst company FactSheet predicting robust sales of $47.4 billion and adjusted earnings per share of $2.07.
But the filing will include what the company expects in terms of business prospects in the coming year, and that’s an open question. President-elect Donald Trump and Republican lawmakers are going full steam ahead with plans to repeal the ACA. No one knows what the replacement will be, at this point. There’s a lot of nervousness out there.
United might also— down the road some—wind up being a victim of its own success. Its shares have more than tripled over the last five years. “UnitedHealth’s lofty valuation eventually could pose a problem for shareholders if years of robust business growth begins to stall,” the Wall Street Journal reports. “But that risk is, for now, a hypothetical one. Sales rose more than 11% in the third quarter from a year earlier.”
Source: Wall Street Journal