UnitedHealth Group exceeded expectations in the first quarter despite facing costs from a cyberattack on its Change Healthcare business. Despite the attack disrupting payment and claims processing, the company’s performance was strong, with shares rising in midday trading. The company is still working on restoring services but remains optimistic about the future of Change Healthcare.
In addition to the cyberattack costs, UnitedHealth also incurred expenses from selling a Brazilian health benefits and care provider. The company reported a loss of $1.41 billion in the first quarter, but total revenue grew over 8% to $99.8 billion. Adjusted earnings per share were $6.91, surpassing analyst expectations.
Looking ahead, UnitedHealth expects the cyberattack to impact earnings between $1.15 to $1.35 per share this year. Despite this, the company reaffirmed its 2024 earnings forecast and analysts remain positive about the company’s performance. The positive results led to a more than 5% increase in company shares in midday trading.