Aetna Inc.'s (AET) third quarter 2011 results exceeded the Zacks Consensus Estimate. Declining utilization, strong performance across all the product lines, disciplined pricing and medical cost trends powered the earnings upside.
Aetna is making very good progress in its Medicare business. The lifting of the CMS sanctions in June and the acquisition of Genworth's Medicare Supplement business will advance its Medicare platform. Aetna is also aggressively looking to generate incremental fee revenues by managing the infrastructure necessary for care organizations. Aetna is growing its international business for diversification benefits.
Moreover, its deployment of $1.2 billion for acquisitions will gear it fully for the changed environment after the implementation of the Health Care law. A solid balance sheet, in-target range of debt and adequate liquidity provide strength.
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