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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Aetna Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.94% to $1.50 in the quarter versus EPS of $1.34 in the year-earlier quarter.

Revenue: Rose 3.67% to $9.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aetna Inc. reported adjusted EPS income of $1.50 per share. By that measure, the company beat the mean analyst estimate of $1.39. It missed the average revenue estimate of $9.64 billion.

Quoting Management: “Aetna’s strong first-quarter results demonstrate the strength of our diversified business model,” said Mark T. Bertolini, Aetna chairman, CEO and president. “Operating revenues increased for the company, and we grew membership for the fourth consecutive quarter fueled by strong growth in our Medicare business. We also introduced Healthagen, a new business brand that combines our population health management solutions and health information technologies to help improve care quality, costs and patient engagement.”

Key Stats (on next page)…

Revenue decreased 3.44% from $9.85 billion in the previous quarter. EPS increased 59.57% from $0.94 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.37 to a profit $1.34. For the current year, the average estimate is a profit of $5.53, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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