UnitedHealth jump-starts Q2 earnings season with $2.9B profit

UnitedHealth Group recorded a 28 percent increase in net income during the second quarter of fiscal year 2018 as its Medicare Advantage membership grew and all its Optum units saw double-digit gains.

Here are four things to know about UnitedHealth's earnings from the three-month period ended June 30:

1. UnitedHealth's second-quarter revenues grew 12.1 percent year over year to $56.1 billion. The company's second-quarter expenses grew 12 percent to $51.9 billion, compared to $46.3 billion in the same quarter of 2017.

2. UnitedHealth's health insurance business, UnitedHealthcare, served 2.2 million more customers in the second quarter of 2018 than in the same period a year prior. A large chunk of the growth came from UnitedHealthcare's Medicare Advantage unit, which expanded to serve 450,000 more consumers year over year.

3. UnitedHealth's Optum segment generated revenues of $24.7 billion in the second quarter of 2018, up 9.1 percent from the same period a year prior. Optum's operating income jumped 21.5 percent, and all of Optum's business segments saw double-digit percentage earnings growth.

4. UnitedHealth ended the three-month period with net income of $2.9 billion, up about 28 percent compared to $2.3 billion reported in the second quarter of last year. The company raised its outlook for the year and now expects operating cash flows to approach $15.5 billion.

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