STAT+: UnitedHealth earnings beat expectations in the first quarter, but hurdles persist

UnitedHealth Group, a company defined by growth, is systematically paring back parts of its business it spent years building up: Medicare Advantage and its sprawling provider network. That retreat is now paying off.  UnitedHealth’s financial performance in the first quarter, released Tuesday, far exceeded analysts’ expectations in both its Optum and UnitedHealthcare divisions.

As a result, the company raised its full-year adjusted earnings outlook by 2.8% to $18.25 per share. Analysts praised the company’s performance in their notes, and UnitedHealth’s stock climbed as much as 10% mid-morning, even giving its competitors a lift.  Leaders who spoke on the company’s earnings call Tuesday morning sounded celebratory yet cautious, noting that both its insurance division, UnitedHealthcare, and its provider division, Optum Health, accrue most of their earnings in the first half of the year.  Continue to STAT+ to read the full story...