UnitedHealth Sees Double-Digit Profit Growth - TheStreet

UnitedHealth Sees Double-Digit Profit Growth

The company's stock is rising 6% in afternoon trading.
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(UNH) - Get Report

posted solid earnings and revenue growth for the second quarter, and the company said it expects double-digit profit gains to continue through 2004.

The company reported second-quarter earnings of $439 million, or 71 cents a share, up from $325 million, or 51 cents a share, last year. Revenue increased to $7.09 billion, up from $6.08 billion a year ago.

"Our operating units are currently experiencing strong new business sales for 2004 and have significant sales opportunities still emerging," the company said in a press release.

The company also expects "strong revenue, operating margin, cash flow and return on capital performance over the balance of 2003 and in 2004."

For all of 2003, UnitedHealth forecast earnings growth of around 34% to roughly $2.85 a share. Additionally, the company projected earnings growth of 18% to 20% in 2004.

Analysts polled by Thomson First Call expected the healthcare services provider to earn 66 cents in the second quarter. For the full year, analysts are looking for a profit of $2.71.

In afternoon

New York Stock Exchange

trading, shares of UnitedHealth were up $2.98, or 6%, to $51.59.