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UnitedHealth Group (NYSE:UNH) shares fell more than 10% in early trading Tuesday after the company said CEO Andrew Witty is stepping down and it is withdrawing its 2025 profit forecast.
The company said Witty is leaving for personal reasons. He will be succeeded by Stephen Hemsley, who previously led the health care giant from 2006 to 2017 and currently serves as chairman of the board.
The leadership change comes as UnitedHealth faces a mix of operational and industry-wide challenges. The company cited continued acceleration in care activity and elevated medical costs, particularly for new Medicare Advantage members, as reasons for pulling its full-year guidance.
Last month, UnitedHealth lowered its earnings forecast to a range of $24.65 to $25.15 per share, down from its earlier guidance of $29.50 to $30.00. The revision followed signs of rising care utilization and Medicare Advantage funding pressures.
Hemsley said the company remains focused on long-term growth and plans to return to its historical annual growth target of 13% to 16% in the future.
This article first appeared on GuruFocus.