Healthcare benefits company, Aetna Inc. (AET) reported declined earnings for its first quarter, but improved its outlook for FY2013.
The Hartford, CT based company reported first quarter net income of $490.1 million, down -4% from $511 million last year. On a per share basis, EPS increased to $1.48 from $1.43 last year due to fewer shares outstanding during the quarter. Excluding special items, earnings were $1.50 per share, up from $1.34 per share. Analysts expected to see earnings of $1.39 per share.
Revenue increased 7% to $9.54 billion from $8.92 billion last year, but fell below analysts estimate of $9.64 billion.
The company saw a 9% upside in its Group Insurance revenue to $581.3 million. Total membership rose to 18.3 million, from 17.92 million last year.
Looking ahead, the company now expects to see FY2013 earnings between $5.50 and $5.60 per share, up from its prior outlook of $5.40 per share. Analysts are expecting to see full year earnings of $5.53 per share.
Aetna shares were mostly flat during premarket trading Tuesday. The stock has increased 29% in the past year.
The Bottom Line
Shares of Aetna Inc. (AET) have a 1.42% yield, based on Monday’s closing price of $56.16.
Aetna Inc. (AET) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.