UnitedHealth Profit Rises 38 Percent

In this undated photo released by UnitedHealth Group Inc., William McGuire, chairman and CEO of UnitedHealth, is shown. UnitedHealth Group Inc. announced on Sunday, Oct. 15, 2006 that McGuire will step down, and it released a report that said many of its stock option grants "were likely backdated." (AP Photo/UnitedHealth Group, Inc.) (AP)

MINNEAPOLIS -- UnitedHealth Group Inc., the nation's second-largest health insurer, said Thursday its third-quarter earnings rose almost 38 percent on growth across its businesses.

The Minnetonka, Minn.-based company said it earned $1.1 billion, or 79 cents per share, on revenue of $18 billion for the three months ended Sept. 30. During the same period last year, UnitedHealth earned $800 million, or 61 cents per share, on sales of $11.6 billion.

Analysts surveyed by Thomson Financial were expecting 76 cents per share on revenue of $18.25 billion.

The company raised its full-year earnings guidance to a range of $2.95 to $2.97 per share, up from the $2.91 to $2.95 it previously expected. It said 2007 revenues would be "in the area of $79 billion" and that earnings per share would grow 15 percent above its predicted 2006 results.

The company announced on Sunday that William McGuire was relinquishing his position as chairman and his board seat immediately and would step down as CEO by Dec. 1 after a company-sponsored probe of its stock options practices revealed likely backdating on McGuire's watch.

UnitedHealth's news release did not mention McGuire by name, and the company offered no new guidance on the size or timing of its restatement for problems in the way it issued stock options to McGuire and other executives.

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UnitedHealth Group: http://www.unitedhealthgroup.com