Aetna Raises Profit Forecast on Customer Growth, Cost Savings
Net income for the quarter rose 2 percent to $548.8 million, or $1.52 a share, from $536 million, or $1.49 a year earlier.
INN Breaking News, July 29, 2014
(Bloomberg) -- Aetna Inc., the third-largest U.S. health insurer, raised its profit forecast for the year and reported second-quarter earnings that beat analyst estimates on an increased number of customers and cost savings from a merger.
Net income for the quarter rose 2 percent to $548.8 million, or $1.52 a share, from $536 million, or $1.49 a year earlier, the company said today in a statement. Earnings excluding one-time items totaled $1.69 a share, beating the average estimate from 20 analysts of $1.60.
For the year, earnings will be $6.45 to $6.60 a share, the company said, up from a previous forecast of $6.35 to $6.55.
Medical membership totaled 23.1 million in the quarter, up by 385,000 from the first quarter, the Hartford, Connecticut- based company said. The acquisition of Coventry Health Care Inc. last year will add more to earnings this year than previously forecast, the company said. Revenue rose 25 percent to $14.5 billion.
Aetna rose 1.7 percent to $84.82 at the close yesterday in New York. The stock has gained 34 percent in the past year through yesterday.
All Insurance Networking News articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, podcasts, e-books, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders and developing trends.