Why UnitedHealth Stock Rocketed Nearly 7% Higher Today

A convincing bottom-line beat helped increase the share price of big health insurer UnitedHealth Group (NYSE: UNH) on Tuesday. Investors liked what they saw with the company's second-quarter results, and rewarded it by pushing the stock nearly 7% higher in value across the day. That compared very favorably to the S&P 500 index, which inched up by less than 1%.

Top- and bottom-line increases

In the quarter, UnitedHealth booked revenue of $98.9 billion, which was 6% higher on a year-over-year basis. Much of the growth came from the company's sprawling Optum healthcare services division, the unit that provides the bulk of its revenue. Optum's top line for the quarter was $62.9 billion, nearly 12% higher than the take in the same quarter of 2023.

As for profitability, that also saw an increase. On a non-GAAP (generally accepted accounting principles) basis, net income landed at just over $6.3 billion, or $6.80 per share. That easily topped the nearly $5.8 billion of the year-ago period.

Both headline fundamentals beat the consensus analyst estimates. Prognosticators tracking UnitedHealth stock were modeling $6.67 per share for adjusted profitability, as well as revenue slightly above $98.7 billion.

In its earnings release, the company attributed its gains to a higher customer count for both Optum and its foundational UnitedHealthcare division.

Earnings guidance reiterated

UnitedHealth reiterated its existing guidance for full-year, adjusted net income. It continues to believe this line item will come in at $27.50 to $28.00 per share. The consensus analyst estimate of $27.59 falls squarely within this range.

The company did not provide any revenue guidance in the earnings release.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy .