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UnitedHealth shares plunged 20 per cent in pre-market trading on Thursday after the US health and insurance group slashed its annual profit forecast.
More than $100bn of market value was wiped out in pre-market trading after UnitedHealth warned it had experienced a surge in demand for medical services from older customers that was “far above” expectations.
The company said it expected net earnings per share this year in a range of $24.65 to $25.15, down from a previous forecast of $28.15 to $28.65.
Chief executive Andrew Witty said that the company “did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead”.
Shares in the Minneapolis-based company were down 20 per cent at $471.25.
The company is still dealing with the aftermath of the killing in December of one of its top executives, Brian Thompson, who was fatally shot outside an investor event in New York.
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