UnitedHealth Group’s Earnings Report Might Hint at Industry’s Reaction to ACA Repeal

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