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And in other news of note, Barry Diller has expressed interest in buying CNN and approached Warner Bros.
Discovery about a deal last year.
The Wall Street Journal reports that Diller inquired about CNN before Warner announced this plan to split into two distinct businesses, and before WBD formally put itself up for sale.
Sources close to Warner told the Journal that no serious action was taken on Diller's approach and it wasn't brought to the board, but Diller is still said to be interested in CNN and is eyeing a deal in a personal capacity.
Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.
Today is Tuesday, January 27th, and I'm your host, Kim Kahn.
UnitedHealth Group is plunging, along with other managed care names, after Q4 revenue and its full-year revenue outlook both fell short of Wall Street forecasts, hitting an industry already reeling from an unfavorable Medicare rate decision.
The number one player in the Medicare Advantage market is down nearly 20%, dragging the Dow into the red.
Humana, CVS, Cigna, Clover Health, and Alignment Healthcare are also under pressure.
The Trump administration has proposed nearly flat reimbursement rates for Medicare Advantage payers in 2027.
The average payment increase is slated at just 0.09%, roughly $700 million overall.
Street analysts have been looking for a 4-6% rise.
UnitedHealth reported adjusted EPS of $2.10 for the quarter, in line with the consensus, while Q4 revenue came in at $113.2 billion, missing forecasts by about $520 million, despite 12% year-over-year growth.
For 2026, the company projects adjusted EPS of more than $17.75, roughly in line with the $17.76 analysts expect on more than $439 billion in revenue, below the streets forecast of $456 billion.
Edmund Ingham, seeking Alpha's investing group leader for Hagerston BioHealth, called it a somewhat disastrous start for the new year for America's largest health insurer.
It looks as though UnitedHealth's shareholders are in for more pain after a tough 2025, which saw shares decline by about 30%, he added.
Also in earnings, Boeing is lower despite Q4 results that beat expectations on earnings and revenue as investors weigh strong delivery growth against ongoing operational and financial concerns.
Boeing is still posting losses in key units.