UnitedHealth Group (UNH) reported revenues of $56.1 billion for the second quarter of 2018, a 12% increase year-over-year. Net earnings attributable to UnitedHealth Group common shareholders was $2.92 billion or $2.98 per share. Adjusted EPS totaled $3.14 for the quarter. Both GAAP and adjusted EPS grew 28% year-over-year.
The earnings came above market expectation, though revenue was just on par with it. The stock dropped 1.2% premarket following the earnings release.
UnitedHealth raised its outlook for full-year 2018 GAAP EPS to a range of $11.80 to $12.05 per share and adjusted EPS to a range of $12.50 to $12.75 per share. The company expects cash flow from operations to reach $15.5 billion for 2018.
Consolidated medical care ratio of 81.9% fell 30 BP year-over-year, as the return of the health insurance tax more-than-offset business mix changes and reduced levels of prior-year reserve development during the second quarter. Days claims payable decreased one day sequentially to 48 days while days sales outstanding decreased one day sequentially to 18 days during Q2 2018.
In the UnitedHealthcare segment, net customer growth during the second quarter was 2.2 million. Total revenues grew over 12% driven by an increasing number of people served, a higher revenue membership mix, price increases to cover medical cost trends and resumption of the health insurance tax for this year. UnitedHealthcare Global revenues grew 33.5% year-over-year to $2.5 billion aided by business expansion.
UnitedHealth Group paid $866 million in dividends during the second quarter. This reflected an increase in the annual dividend payment rate by 20% to $3.60 per share in June 2018.