UnitedHealth Group shares surged 6.9 percent to $447.41 after the health insurance provider reported second-quarter revenue that topped Wall Street expectations.
The company posted revenue of $112 billion for the quarter, surpassing analysts' estimates of $110.6 billion by 1.3 percent.
Sales remained flat compared to the same period last year.
Strong Earnings and Margin Growth
Non-GAAP adjusted earnings per share came in at $6.38, significantly above the consensus estimate of $4.88.
This marks a 30.6 percent beat and an increase from $4.08 per share in the year-ago quarter.
UnitedHealth's adjusted operating margin expanded to 7.1 percent, up from 4.6 percent in the corresponding period last year.
Over the past five years, the company has maintained an average adjusted operating margin of 7.6 percent.
Over the last five years, UnitedHealth achieved a compounded annual sales growth rate of 10.6 percent.
However, annualized revenue growth slowed to 8.1 percent over the past two years.
Analysts expect revenue to remain flat over the next 12 months, with full-year earnings per share projected to grow 5.7 percent from $18.64 to $19.71.
