Aetna Beats Q3 Earning Estimates On Membership Growth

Aetna Inc. (AET - Analyst Report) is one of the nation's leading diversified healthcare benefits companies, Aetna with its strong business, a diversified revenue stream should benefit in this changing environment.

Aetna proposed to acquire Humana Inc. last year. The deal would have enabled it to penetrate the fast growing the Medicare space.However, the company has been sued by the U.S. Department of Justice and there now remains uncertainty around the closing of the deal.

Aetna has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 7.31%.

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 beats on earnings. Our consensus called for EPS of $2.02 and the company reported earnings per share of $2.07. Earnings increased 9% on an year over year basis.

The Top Line: Revenues missed expectations. Aetna posted operating revenues of $15.74 billion, a tad lower than our consensus estimate of $15.76 billion, but was up 5% year over year.

Key Stats: Total operating expenses were $2.8 billion for the third quarter of 2016.

Medical membership increased by 143000 compared with Jun 30, 2016, primarily reflecting increases in Aetna's Commercial ASC products.

AETNA INC-NEW Price and EPS Surprise

AETNA INC-NEW Price and EPS Surprise | AETNA INC-NEW Quote

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