UnitedHealth Group Reports Better-than-Expected Earnings
In its latest earnings report, UnitedHealth Group has exceeded expectations for the third quarter, primarily due to growth in its insurance and Optum businesses. However, medical costs have risen higher than anticipated. The medical loss ratio for the quarter, which measures medical expenses as a percentage of premiums, stood at 85.2%, up from 82.3% reported in the same quarter last year and exceeding analyst expectations of 84.2%. Adjusted earnings per share came in at $7.15, surpassing the average analyst forecast of $7.
Boeing Plans to Raise $25 Billion Over Three Years to Boost Liquidity
Boeing announced that it may raise up to $25 billion through equity or debt over the next three years to enhance its liquidity. The troubled manufacturer is facing challenges, including a month-long strike by mechanics and broader issues in its aircraft business. Earlier, Boeing revealed in a statement that it has secured a $10 billion credit agreement with a banking consortium. The company is striving to stabilize its balance sheet amid warnings from credit rating agencies about the potential loss of its investment-grade rating.
United Airlines to Repurchase $1.5 Billion in Stock Amid Strong Performance
United Airlines has announced a $1.5 billion stock repurchase program, citing better-than-expected earnings during the summer travel season and strong forecasts for the final three months of the year. The airline expects adjusted earnings per share for the fourth quarter to be between $2.50 and $3.00, compared to $2.00 for the same period last year, while analysts surveyed by LSEG predict earnings of $2.68 per share. This marks United’s first stock buyback since before the pandemic, during which the airline industry received over $50 billion in government aid that prohibited stock buybacks and dividends.
Goldman Sachs Reports 45% Surge in Earnings, Fueled by Trading Rebound
Goldman Sachs saw a remarkable 45% increase in earnings for the third quarter, driven by a rebound in trading volumes. As corporate clients have grown more confident about the economic outlook, there has been an uptick in debt and equity issuances. Investment banking fees surged by 20% to $1.87 billion, while increased income from equity underwriting was attributed to a wave of secondary stock sales. Fixed income, currencies, and commodities (FICC) trading revenues fell by 12%, while equity trading revenues rose by 18%. However, due to increased charge-offs in the credit card portfolio, the bank set aside $397 million for credit losses, up from $7 million a year earlier.
UBS Raises S&P 500 Year-End Target to 5,850 Points
UBS Global Research has raised its year-end target for the S&P 500 index from a previous forecast of 5,600 points to 5,850 points, citing corporate earnings growth, a favorable macroeconomic backdrop, and anticipated interest rate cuts. Year-to-date, the index has gained 22.85%, recently reaching an all-time closing high of 5,859.85 points on the 14th. UBS has also increased its 2025 year-end target for the index from 6,000 points to 6,400 points, noting that strength in technology stocks could further boost the overall index.
