UnitedHealth reported a healthy second quarter earnings report ahead of the opening bell.
The company reported adjusted earnings per share of $7.12, exceeding expectations of $5.28. Total revenue increased $1.5 billion year over year to $62.1 billion.
United maintained its expectation of earnings of between $16.25 and $16.55 for the full year.
What drove the earnings beat? As many states began to reopen in the quarter, United noted that patients began to actively pursue the care deferred during the initial coronavirus pandemic shutdown at a rapid pace. The company noted earnings were "substantially higher than anticipated due primarily to the unprecedented, temporary deferral of care in the Company’s risk-based businesses."
Many elective surgeries and treatments were cancelled amid the stay at home orders. United said it expects the medical care ratio to rise in coming quarters need care is accessed.
How is Jim Cramer approaching the stock going forward? While Cramer couldn't deny the report was strong, he wouldn't be a buyer of the stock here.
Cramer said deferred payments will be a headwind for the stock going forward, as the company itself disclosed in its earnings release.
Watch all of Cramer's reasons to sell the stock in the video above.
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