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UnitedHealth Group Q3 Earnings Preview: Dow Jones Industrial Average Stock Could 'Move Markets' Tuesday
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UnitedHealth Group Q3 Earnings Preview: Dow Jones Industrial Average Stock Could 'Move Markets' Tuesday
Oct 14, 2024 1:49 PM

With the Dow Jones Industrial Average at all-time highs, the earnings report from UnitedHealth Group ( UNH ) on Tuesday before the market open could be of particular interest.

Earnings Estimates: Analysts expect UnitedHealth ( UNH ) to report third-quarter revenue of $99.28 billion, up from $92.36 billion in last year's third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in nine of the last 10 quarters, with the most recently reported second-quarter results the lone miss.

Analysts expect the company to report third-quarter earnings per share of $7.00, up from $6.56 in last year's third quarter. The company has beaten analyst estimates for earnings per share in nine of the last 10 quarters, with the lone miss coming in the second quarter.

Read Also: CVS, UnitedHealth Request FTC Chair Recusal Amid Ongoing Pharmacy Benefit Managers Lawsuit

Why It's Important: UnitedHealth's ( UNH ) second quarter results were significantly impacted by a cyberattack against the company's billing and payments business, which led to misses in earnings and revenue compared to analyst estimates.

Third-quarter estimates expect the company to post growth on a year-over-year basis for both segments and the stock could be one of the most watched for the week with earnings season in full swing.

With a share price over $600, UnitedHealth ( UNH ) is currently the largest weighting in the price-weighted Dow Jones Industrial Average at around 9.5%.

"Look for United Healthcare to move markets as it is the largest component in the Dow Jones Industrial Average," Freedom Capital Markets Chief Global Strategist Jay Woods said in his weekly newsletter.  

The earnings report comes with the Dow Jones Industrial Average hitting new all-time highs of 43,111.45 on Monday. The SPDR Dow Jones Industrial Average ETF ( DIA ) , which tracks the index, was up 0.5% to $430.89 on Monday.

Recent analyst ratings for UnitedHealth ( UNH ) include Cantor Fitzgerald reiterating an Overweight rating with a $591 price target and KeyBanc initiating the stock with an Overweight rating with a $675 price target.

UNH Price Action: UnitedHealth ( UNH ) stock was up 1.2% to $605.40 on Monday, versus a 52-week trading range of $436.38 to $607.90. UnitedHealth ( UNH ) stock is up 12.5% year-to-date in 2024.

Read Next:

UnitedHealth Vs. CVS Vs. Cigna: Which Health Stock Will Beat The FTC’s Regulatory Heat?

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