Benzinga | Apr 14, 2021 10:43AM EDT

Earnings Outlook for UnitedHealth Group

UnitedHealth Group (NYSE:UNH) releases its next round of earnings this Thursday, April 15. Here is Benzinga's essential guide to UnitedHealth Group's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

UnitedHealth Group EPS will likely be near $4.37 while revenue will be around $69.27 billion, according to analysts. UnitedHealth Group EPS in the same period a year ago totaled $3.72. Sales were $64.42 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 17.47%. Revenue would be up 7.53% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.41 3.09 5.18 3.64EPS Actual 2.52 3.51 7.12 3.72Revenue Estimate 65.06 B 63.96 B 63.43 B 64.33 BRevenue Actual 65.47 B 65.11 B 62.14 B 64.42 B

Stock Performance

Over the last 52-week period, shares are up 25.75%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. UnitedHealth Group is scheduled to hold the call at 08:45:00 ET and can be accessed here.