UnitedHealth Group (NYSE: UNH) has reported its second quarter 2024 results, showing a significant increase in revenues. Revenues for the quarter reached $98.9 billion, marking a nearly $6 billion growth from the same period last year. The company's cash flows from operations were $6.7 billion, which is 1.5 times its net income.
UnitedHealth Group's second quarter earnings of $4.54 per share reflect the impact of classifying its remaining South American operations as held for sale and cyberattack impacts. Adjusted earnings of $6.80 per share include $0.28 in business disruption impacts, excluding costs related to South American and direct response.
The company's outlook for full year 2024 net earnings has been updated to $15.95 to $16.40 per share, reflecting the classification of its South American operations and estimated change healthcare cyberattack impacts. The company affirmed the adjusted net earnings outlook of $27.50 to $28.00 per share, which includes an estimated $0.60 to $0.70 per share of business disruption impacts for the affected change healthcare services.
In terms of financial performance, UnitedHealth Group's revenues for the second quarter of 2024 grew nearly $6 billion, and earnings from operations were $7.9 billion. The reported medical care ratio for the quarter was 85.1%, including 65 basis points of impacts due to accommodations to support care providers and South American actions.
UnitedHealthcare, a subsidiary of UnitedHealth Group, saw its second quarter revenues reach $73.9 billion, a nearly $4 billion increase from the previous year. The total number of consumers served domestically with the company's commercial offerings grew by 2.3 million to 29.6 million year to date. The company's offerings for seniors and people with complex needs also saw growth, reaching 9.4 million.
Optum, another subsidiary of UnitedHealth Group, reported second quarter revenues of $62.9 billion, reflecting a growth of over $6 billion from the previous year. Optum's revenue backlog grew by over $1 billion from the previous year, reflecting new health system partnerships.
In light of the cyberattack impacts, the company has provided over $9 billion in advance funding and interest-free loans to support care providers, with total cyberattack impacts in the second quarter amounting to $0.92 per share.
The company's operating cost ratio for the second quarter of 2024 was 13.3%, reflecting continued strong operating cost efficiency. Additionally, the annual dividend rate was increased by 12%, marking the 15th consecutive year of double-digit increases.
UnitedHealth Group will be hosting a conference call with investors to discuss its results, strategy, and future outlook at 8:45 a.m. Eastern Time today. A webcast replay of the conference call will be available through July 30, 2024.
The financial information presented in the release is non-GAAP and is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (GAAP). The market has reacted to these announcements by moving the company's shares 0.8% to a price of $515.37. For more information, read the company's full 8-K submission here.
