UnitedHealthcare stock takes massive hit after earnings forecast cut
UnitedHealthcare campus sign in Minnetonka (FOX 9)
(FOX 9) - After a disappointing first-quarter report, UnitedHealthcare's stock took a massive drop on Thursday, as corporate officials slashed its 2025 earnings forecast.
UnitedHealthcare stock plummets
What we know:
UnitedHealthcare's stock price fell more than 22%, 130 points, on Thursday after missing Wall Street estimates for earnings. The company also announced it was slashing its 2025 earnings forecast.
The fall was UnitedHealthcare's worst single-day performance in more than 25 years. UnitedHealthcare's drop helped drag down the Dow Jones Industrial Average, which lost more than 500 points on the day, while other indices were flat.
Local perspective:
UnitedHealthcare is a Twin Cities-based company with its headquarters in Minnetonka. The company is one of the largest health insurers in the nation, covering more than 50 million people.
CEO: ‘Unusual and unacceptable’ results
Dig deeper:
Corporate leaders blamed the first-quarter results on an increase in care for patients in Medicare Advantage, which was double expectations. Officials said the spike did not extend to other coverage areas.
What they're saying:
UnitedHealthcare CEO Andrew Witty called the first-quarter report "frankly unusual and unacceptable" but assured investors that it was a temporary, fixable issue.
The company still posted a $6.3 billion profit in the quarterly report.
The Source: This story uses Associated Press reporting.