Aetna Reports Lower Profits; Improves Outlook (AET)

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here