Aetna Inc. (AET), headquartered in Hartford, CT, is one of the largest commercial health and benefits insurers providing health insurance and related products to over 22 million individuals. Aetna is a solid company, with a diversified revenue stream that should be beneficial in this changing environment.
However, like many of its peers, Aetna is facing the numerous challenges from the Health Reform Act. But the company stands apart from its peers as it has focused towards investing in accountable care and IT, which will drive long term growth.
Aetna has a pretty good earnings track record with the company delivering positive earnings surprises in three out of the last four quarters with an average surprise of 11.3%.
Currently, Aetna has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
The Bottom Line: Aetna posts in-line fourth quarter earnings. Our consensus called for EPS of $1.22, in line with the company’s EPS.
The Top Line: Revenues came in ahead of expectations. Aetna posted revenues of $14.7 billion, higher than our consensus estimate of $14.6 billion.
Key Stats: Medical membership of 23.5 million as on Dec 31, 2014, representing a 6% year-over-year increase.
Aetna returned more than $1.5 billion to its shareholders via share buyback and an increased dividend
Aetna now expects 2015 earnings to be atleast $7.00 per share, up from atleast $6.90 per share guided earlier.
Check back later for our full write up on this Aetna earnings report later!
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