UnitedHealth Group (NYSE:UNH) shares have dipped just over 1% premarket after the company issued FY23 and FY24 financial guidance ahead of its annual investor conference today.
The company said it will introduce its 2024 outlook, which includes revenues of $400 billion to $403 billion and adjusted net earnings of $27.50 to $28.00 per share. In addition, cash flows from operations are expected to range from $30 billion to $31 billion.
UnitedHealth Group's 2023 adjusted net earnings are expected to come in between $24.85 and $25.00 per share.
Consensus expectations see UNH's FY23 EPS at $24.92 and FY24 EPS at $27.9 on revenue of $398.8 billion.
Reacting to the report, UBS analysts maintained a Buy rating and a $640 price target on the stock. "The company previously indicated on its 3Q23 earnings call that current (as of 10/13) consensus estimates reflect the upper end of the likely initial 2024 EPS guidance range, with consensus at the time forecasting 2024 EPS of $27.85," the analysts explained.
"Based on its 2023 EPS midpoint (of $24.93; left 2023 adj. EPS unchanged at $24.85-25.00), the new 2024 EPS range implies a 10.3-12.3% EPS growth range next year, which is lower than its 13-16% LT EPS growth target. For background, UNH has generally started each year with conservative expectations and stepped up its outlook gradually over time," they added.