The Minnetonka, Minn., insurer said Monday that it expects 2012 earnings of between $4.55 and $4.75 per share on revenue of between $107 billion to $108 billion. Analysts surveyed by FactSet expect earnings of $4.75 per share on $108.1 billion in revenue.
UnitedHealth's forecast doesn't reflect estimates of some one-time costs or its recently announced plan to acquire Medicare Advantage plan provider XL Health Corp.
The company also affirmed its forecast for 2011 earnings of $4.52 to $4.57 per share. Analysts expect earnings of $4.55 per share.
UnitedHealth is the largest publicly traded health insurer based on total revenue and the second-largest based on enrollment, trailing WellPoint Inc.
Bernstein analyst Ana Gupte said in a Monday morning note that the insurer's initial guidance is conservative, and it will be able to reach the consensus expectation for 2012 earnings or her "bull case view" of $5 per share.
BMO Capital analyst Dave Shove said in a separate note that the company's 2012 forecast falls far below his estimate for earnings of $5.18 per share. He also noted that the company's forecasted range for 2011 earnings has already increased around 25 percent from the initial guidance that it issued about a year ago.
UnitedHealth initially said last year it expected 2011 earnings of $3.50 to $3.70 per share, which represented a drop from its 2010 projection. The company said the health care overhaul and pressure on its government programs like Medicare and Medicaid would affect its performance heading into 2011.
Insurers expected to take a hit heading into 2011 from a new overhaul provision that calls for them to spend minimum amounts of the premiums they collect on care and quality improvements, but the new provision has turned out to be mostly manageable for the sector.
UnitedHealth executives will discuss the company's outlook Tuesday at its annual investor meeting.
Company shares climbed 3.5 percent, or $1.53, to $45.20 in Monday morning trading. Broader markets were sharply higher, with the Dow Jones industrial average up 2.8 percent. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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