Aetna Earnings: Everything You Must Know Now

Aetna Inc. (NYSE:AET) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Aetna Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.03% to $1.52 in the quarter versus EPS of $1.31 in the year-earlier quarter.

Revenue: Rose 31.38% to $11.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aetna Inc. reported adjusted EPS income of $1.52 per share. By that measure, the company beat the mean analyst estimate of $1.41. It missed the average revenue estimate of $11.99 billion.

Quoting Management: “The second quarter marked a significant milestone for Aetna with the completion of our Coventry Health Care acquisition,” said Mark T. Bertolini, Aetna chairman, CEO and president. “Aetna’s strong quarterly results demonstrate the power of our diversified portfolio, and enable us to raise our operating earnings guidance again to $5.80 to $5.90 per share. At its midpoint, our revised guidance would represent growth of 14 percent in operating earnings per share in 2013, and 17 percent compound annual growth since 2010.”

Key Stats (on next page)…

Revenue increased 21.59% from $9.51 billion in the previous quarter. EPS increased 1.33% from $1.50 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.56 to a profit $1.61. For the current year, the average estimate has moved up from a profit of $5.58 to a profit of $5.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)