AET Misses Q4 Marginally
Analysts at Goldman Sachs maintain their "neutral" rating on Aetna Inc (NYSE: AET).
Aetna reported its Q4 EPS inline with the guidance and marginally short of the estimates and consensus. Although AET’s 2010 guidance was significantly short of the Street view, it is inline with the company’s prior view that 2010 EPS would be lower than that achieved in 2009, the analysts say.
While the announcement is negative, “Q4 results show clear signs (of) strengthening in core operating results with healthcare earnings 18% above our model while op. cash flow was very strong (>3X net income), with favorable prior period reserve development replenished back into reserves (DCP flat),” Goldman Sachs mentions. “We think the 2010 outlook reflects a strong dose of conservatism and a desire to rebuild credibility on earnings after the 30% decline in 2009 EPS,” the analysts add.
