UnitedHealth Group (UNH) shares rose 5.3% in recent Tuesday trading after Q1 profit and revenue topped estimates by analysts, and the company affirmed its 2024 adjusted earnings outlook despite disruptions from a cyberattack.
Earlier Tuesday, the company reported Q1 adjusted earnings of $6.91 a share, up from $6.26 a year earlier. Analysts polled by Capital IQ expected $6.62.
Revenue in the quarter ended March 31 rose to $99.8 billion from $91.93 billion a year earlier. Analysts surveyed by Capital IQ expected $99.28 billion.
The company said it continues to expect full-year 2024 adjusted EPS of $27.50 to $28. Analysts expect $27.53.
UnitedHealth said it booked $872 million in costs in Q1 due to the Change Healthcare cyberattack, which is expected to cost $1.35 billion to $1.6 billion in the year ending Dec. 31.
Chief Executive Officer Andrew Philip Witty said on an earnings call that UnitedHealth’s “substantial resources” helped mitigate the impact of the attack, and he vowed to “bring (Change Healthcare) back much stronger than it was before.”
Without UnitedHealth Group owning Change Healthcare, “this attack would likely still have happened, and it would have left Change Healthcare, I think extremely challenged to come back,” Witty said.