Published on 20 Jan 2022 on Zacks via Yahoo Finance

UnitedHealth's Solid Q4 Earnings Put These ETFs in Focus

The largest U.S. health insurer UnitedHealth Group UNH reported better-than-expected fourth-quarter 2021 results, breezing past the Zacks Consensus Estimate for both earnings and revenues. The company reaffirmed its full-year earnings (read: Dow ETF in Focus Going Into Q4 Earnings Announcements).Following the solid results, UNH shares added 0.3% at the close of yesterday’s trading session. Investors could tap this opportune moment with ETFs having the largest allocation to this health insurance giant such as iShares U.S. Healthcare Providers ETF IHF, iShares Evolved U.S. Healthcare Staples ETF IEHS, Health Care Select Sector SPDR Fund XLV, iShares U.S. Healthcare ETF IYH and Vanguard Health Care ETF VHT.

Earnings in Focus

Earnings per share came in at $4.48, topping the Zacks Consensus Estimate of $4.30 and improved from the year-ago earnings of $2.52. Revenues grew 12% year over year to $73.7 billion and edged past the estimated $73 billion. The company saw double-digit revenue growth in both its core insurance business and Optum segment (see: all the Healthcare ETFs here).UnitedHealth signed up greater numbers of members in the fourth quarter while keeping costs at check amid the rapidly shifting COVID-19 pandemic. Medical ratio (a measure of the percentage of premiums paid out for medical services) increased to 83.7% from 82.8% in Q3.The health insurer reiterated its revenue guidance of $317-$320 billion and adjusted earnings per share view of $21.10-$21.60. The Zacks Consensus Estimate is pegged at $21.70 for earnings per share and $315.8 billion for revenues in 2022.