UPDATE: Aetna Posts Upbeat Q3 Profit, Lifts Forecast

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Aetna
AET
reported stronger-than-expected profit for the third quarter and lifted its earnings forecast for the year. Aetna now expects full-year earnings of $6.60 to $6.70 per share, versus its earlier forecast of $6.45 to $6.60 per share. The Hartford, Connecticut-based company reported a quarterly profit of $594.5 million, or $1.67 per share, versus a year-ago profit of $518.6 million, or $1.38 per share. Excluding certain items, the company's operating earnings climbed to $1.79 per share from $1.61 per share. Its operating revenue surged 13% to $14.7 billion. However, analysts were expecting earnings of $1.58 per share on revenue of $14.63 billion. Operating earnings for Health Care unit slipped to $625.6 million, from $627.5 million, in the year-ago quarter. Operating earnings for Group Insurance unit jumped to $47.9 million from $20.5 million, while Large Case Pensions unit operating earnings declined to $4.9 million from $6.2 million. As of Sept. 30, Aetna's total medical membership rose to 23.6 million, versus 23.1 million in the earlier quarter and 22.2 million at the end of the year-ago period. The company repurchased totaled 3.2 million shares at a cost of $255 million during the third quarter. “Aetna reported solid third-quarter results, including our 10th consecutive quarter of membership growth, record quarterly operating revenues, and continued high single-digit pretax operating margin,” said Mark T. Bertolini, Aetna chairman, CEO and president. “These results are a testament to the power of our strategy and the strength of our diversified business portfolio. Aetna shares rose 0.62% to close at $79.18 yesterday.
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Posted In: EarningsNewsGuidanceprofit
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