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Aetna Third Quarter Earnings
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Aetna (NYSE:AET) announced its results for the most recent quarter on October 25, 2012. Aetna is a health insurance company. It provides its customers, ranging from individuals to employer groups to governmental units, with traditional and consumer-directed health care benefits products and related services, such as medical, pharmaceutical, dental, behavioral health, group life, and disability plans.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Aetna beat expectations with its latest EPS and revenue figures. The company reported $1.47 per share versus the $1.34 per share estimate and revenues of $8.92 billion versus the $8.68 billion estimate. EPS rose 13.1% while revenue climbed 5.2% from the same period last year. Aetna's profit for the third quarter was $499.2 million. This is 1.8% higher than the year-ago quarter. Last quarter's profit boost ends a two-quarter streak of year-over-year profit decreases.
Management Quote: "Aetna's strong performance in the third quarter is the result of our diversified business model, and demonstrates the rigor with which we manage our operations," said Mark T. Bertolini, Aetna chairman, CEO and president. "We've achieved our full-year medical membership guidance level of approximately 18.2 million medical members and remain focused on a disciplined balance between profitability and growth."
A Look Back: Net income has increased 9.1% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 72.8% from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.10 per share, down from $1.11 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved up from $5.03 a share to $5.08 over the last ninety days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Aetna beat expectations with its latest EPS and revenue figures. The company reported $1.47 per share versus the $1.34 per share estimate and revenues of $8.92 billion versus the $8.68 billion estimate. EPS rose 13.1% while revenue climbed 5.2% from the same period last year. Aetna's profit for the third quarter was $499.2 million. This is 1.8% higher than the year-ago quarter. Last quarter's profit boost ends a two-quarter streak of year-over-year profit decreases.
Management Quote: "Aetna's strong performance in the third quarter is the result of our diversified business model, and demonstrates the rigor with which we manage our operations," said Mark T. Bertolini, Aetna chairman, CEO and president. "We've achieved our full-year medical membership guidance level of approximately 18.2 million medical members and remain focused on a disciplined balance between profitability and growth."
A Look Back: Net income has increased 9.1% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 72.8% from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.10 per share, down from $1.11 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved up from $5.03 a share to $5.08 over the last ninety days.
by
Investopedia Staff
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