(Reuters) -UnitedHealth forecast adjusted profit for 2025 largely in line with Wall Street estimates on Tuesday, ahead of its annual investor conference.

The company sees adjusted profit for the year to be between $29.50 and $30.00 per share, the midpoint of which was slightly below analysts' estimates of $29.92, according to data compiled by LSEG.

The forecast was in line with the company's earlier profit outlook of as much as $30 per share.

Shares of the company fell 1% to $599.17 after the bell.

UnitedHealth, akin to its peers, has seen a demand surge for healthcare services under the government-backed Medicare plans for older adults and individuals with disabilities.

Recent government payment rates and changes in Medicaid eligibility from states have also impacted profit margins due to higher medical costs.

In October, the company said it set next year's forecast "more conservatively than is typical" due in part to payment cuts from the government for Medicare and low state payment rates for Medicaid plans for low-income people.

"It's likely prudent for them to set a conservative outlook that they can beat and raise throughout the year," said James Harlow, senior vice president at Novare Capital Management.

For 2025, the company sees revenue to be between $450 billion and $455 billion, compared with estimates of $431.40 billion.

The outlook represents a solid starting point for a company that provides forecasts conservatively, "though the devil will be in the details," said Oppenheimer analyst Michael Wiederhorn.

The company expects cash flows from operations to range from $32 billion to $33 billion.

UnitedHealth's executives are expected to provide more details on the forecast at the company's investor conference, scheduled for Wednesday.

Investors are likely to focus on what the largest U.S. health insurer says about drivers of higher revenue, details on medical costs and healthcare demand trends.