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.
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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.
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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.
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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.
