UnitedHealth Group Inc. (UNH) reported that its first-quarter net income attributable to common shareholders declined to $1.192 billion or $1.16 per share, from $1.388 billion or $1.31 per share in the same quarter last year, as first quarter 2012 net earnings were aided by strong reserve development and a favorable rebate true-up. Analysts polled by Thomson Reuters expected the company to report earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose to $30.34 billion from $27.28 billion in the prior year quarter. Sixteen analysts had consensus revenue estimate of $30.49 billion for the quarter.
The conversion was partially offset by higher-than-expected overall business growth, and UnitedHealth Group now forecasts 2013 revenues will approximate $122 billion, an increase of 10 percent over 2012 results.
Although the April 1 sequestration cuts were not included in previous projections, the company said it continues to forecast 2013 net earnings in the range of $5.25 to $5.50 per common share, recognizing sequestration pressures the top end of that range.
Analysts expect the company to report earnings of $5.51 per share on revenues of $123.76 billion for fiscal 2013.
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