UnitedHealth posts 1Q earnings below plan, cuts outlook

MINNEAPOLIS -- Health insurer UnitedHealth says lower investment income and declining commercial risk-based membership drove first-quarter results to "unacceptable" levels, and slashed its full-year profit outlook.

Minnetonka, Minn.-based UnitedHealth Group Inc. says it earned $994 million, or 78 cents per share, compared with year-ago earnings of $927 million, or 66 cents per share.

Revenue rose 7 percent to $20.30 billion from $19.05 billion.

Analysts surveyed by Thomson Financial expected higher profit of 80 cents per share, though revenue topped the average estimate of $19.88 billion.

The company lowered its 2008 profit outlook by 40 cents per share to a range of $3.55 to $3.60, citing "unusually high" flu costs, reduced investment income, and projected membership declines. Revenue is expected in the $81 billion to $82 billion range.