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Minnetonka, Minnesota-based Unitedhealth further said that it completed the analysis of adjustments to its financial statements in connection with the review of its historical stock-option grant related irregularities and expects to record pre-tax non-cash charges in the range of $400 million - $600 million for the period 1994 - 2005 and $25 million - $60 million for 2006 under the accounting method FAS 123R. The company also revealed the filing of a Form 8-K with the Securities and Exchange Commission or SEC, providing additional detail regarding risks and uncertainties facing by the business. The company said it would affirm its full-year net earnings outlook range of $4.

14 billion - $4.16 billion. The company also backed its fourth-quarter net earnings range of $1.

17 billion - $1.19 billion. The company said it sees continued strong financial performance, driven by gains from increasing market share and strong operating margins across each of its business units.

While announcing the third-quarter results on October 19, Unitedhealth had raised its fiscal 2006 earnings per share outlook to a range of $2.95 - $2.97 from $2.

91 - $2.95 projected earlier. On average, 19 analysts polled by First Call/Thomson Financial expect the company to report full-year earnings of $2.

97 per share, with expectations ranging from $2.95 to $2.99.

For fiscal 2007, the company sees net earnings in the range of $4.7 billion -$4.75 billion, on revenues of about $79.

5 billion. Wall Street analysts forecast full-year 2007 revenues of $77.91 billion.

Earlier, the company had projected revenues of about $79 billion for fiscal 2007. Unitedhealth said that the outlook for 2006 and 2007 includes the company's current estimated range of additional non-cash stock-based compensation expenses for historical years arising from the review of its stock option practices conducted by the Independent Committee of the Board of Directors. On November 7, 2006 Unitedhealth announced that it was working to complete its final review of accounting adjustments based on the October 15th WilmerHale report on the company's stock option practices.

The company also said then that due to non-cash charges for stock-based compensation expense that were likely to be material for certain periods covered in the review, the company's financial statements for the years ended 1994 - 2005 and the interim quarters through September 30, 2006 should no longer be relied upon. Unitedhealth stated on Tuesday that it has completed the analysis of adjustments to its financial statements substantially and has submitted a request for consultation on certain interpretive issues to the Office of Chief Accountant of the SEC. The company would review these issues with the SEC before completing its restatement of historical financial statements and filing quarterly reports for the quarters ended June 30, 2006, and September 30, 2006.

As per the company, it analyzed the accounting impact of stock-option expanses under two methods, APB 25 and FAS 123R. Under APB 25, Unitedhealth expects total pre-tax non-cash charges in the range of $1.5 billion - $1.

7 billion for stock-based compensation expense for the period 1994 - 2005. Under the company's current accounting method FAS 123R, for the period 1994 - 2005, the company estimates total pre-tax non-cash charges for stock-based compensation expense in the range of $400 million - $600 million and $25 million - $60 million for 2006. Unitedhealth indicated that these estimates are subject to change based on the outcome of the company's consultation with the SEC staff and completion of the company's restatement of its historical financial statements, which would be audited.

These estimates also do not take into account any impact on prior tax deductions related to previously exercised stock options, or reflect any adjustment for any non-operating cash charges which may be required in connection with the resolution of stock option-related tax matters, litigation, and regulatory matters, which are likely to be material. Following the Special Review Committee report on the company's historical stock option-grant practices, on October 15, the company announced its Chairman and Chief Executive William McGuire's decision to leave the company. McGuire has been under pressure since Wall Street Journal reported in March that he received stock options on the days the company's stock price hit yearly lows in 1997, 1999, and 2000.

On December 1, the company revealed the appointment of president and chief operating officer Stephen Hemsley as the company's new chief executive officer, effective immediately. For the recent third quarter, the company earned $1.1 billion or $0.

79 per share, in comparison with $800 million or $0.61 per share last year. The company's total revenues for the quarter surged 55% to $18 billion from $11.

6 billion in the year-ago quarter. Premiums revenues rose to $16.52 billion from $10.

52 billion in the comparable quarter of last year. Services revenues were $1.26 billion, up from $942 million in the same period a year ago.

In the second half of October, healthcare company Aetna Inc. ( | | | ) lifted its full-year operating earnings forecast to $2.83 per share from $2.

77 - $2.79 per share announced earlier. Sixteen Wall Street analysts, on average, are looking for earnings of $2.

81 per share for the year 2006. Aetna also sees 2007 operating earnings of $3.26 per share, a 15% growth over the projected 2006 guidance.

The Street analysts have a consensus earnings estimate of $3.25 per share for fiscal 2007. Another competitor, Indianapolis, Indiana based WellPoint, Inc.

( | | | ), on December 12 said that it expects 2007 net income of $5.53 per share. Analysts expect the company to post 2007 earnings of $5.

52 per share. Operating revenues are estimated at $61.9 billion, up 10% from the projected $56.

1 billion for 2006. Wall Street analysts estimate the company to post revenues of $61.83 billion for the full-year 2007.

UNH closed Monday's regular trading session at $50.40, up $0.31, on a volume of 5.

47 million shares.