UnitedHealth sees profit double in fourth quarter thanks to one-off gain from Trump’s new tax reforms

Unitedhealth Group Inc (NYSE:UNH) edged higher in premarket trade after the health insurer revealed it more than doubled its net profit in the final quarter of 2017.

Net earnings attributable to shareholders soared to US$3.62bn, or US$3.65, in the three months ended December 31.

Earnings per share jumped to US$2.59, comfortably ahead of analyst expectations of US$2.51.

Total revenues rose 9.5% to US$52.1bn, driven growth across all of the company’s businesses. Analysts had been looking for US$51.5bn, according to Thomson Reuters.

The rise in profits was largely driven by a one-time tax gain thanks to the sweeping US$1.5trn tax reforms recently brought in by President Donald Trump.

UnitedHealth – the largest health insurer in the US – also hiked its 2018 net earnings guidance by 16% to between US$11.65 and US$11.95, up from its previous forecast of US$10.00 to US$10.30.

“We enter 2018 with both growth momentum and opportunity, as a result of our focus on improving the experience of those we serve, combined with actions taken to deepen our capabilities and presence in strategic markets,” said chief executive David Wichmann.

Shares rose 1% to US$228.64 in pre-market trade on Tuesday.

Story by ProactiveInvestors