Aetna, Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

S&P 500 (NYSE:SPY) component Aetna, Inc. (NYSE:AET) reported net income above Wall Street’s expectations for the second quarter. Aetna Inc. 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.

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Aetna Earnings Cheat Sheet for the Second Quarter

Results: Net income for the health care plans company rose to $536.7 million ($1.39 per share) vs. $491 million ($1.14 per share) in the same quarter a year earlier. This marks a rise of 9.3% from the year earlier quarter.

Revenue: Fell 2.4% to $8.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AET reported adjusted net income of $1.35 per share. By that measure, the company beat the mean estimate of $1.07 per share. Analysts were expecting revenue of $8.32 billion.

Quoting Management: “Aetna’s second-quarter financial results reflect strong operating fundamentals across the enterprise,” said Mark T. Bertolini, chairman, CEO and president.”Three main factors account for our success: disciplined pricing and medical cost management; lower than anticipated utilization of health care services by our members; and strong cash flow generation. The result has been better-than-projected financial results in the first half of 2011.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 4.2% and in the fourth quarter of the last fiscal year, the figure rose 30%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 47 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 17 cents in the third quarter of the last fiscal year.

Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 0.7% to $8.68 billion in the first quarter from the year earlier.

Competitors to Watch: UnitedHealth Group Inc. (NYSE:UNH), Health Net, Inc. (NYSE:HNT), Coventry Health Care, Inc. (NYSE:CVH), WellPoint, Inc. (NYSE:WLP), CIGNA Corporation (NYSE:CI), WellCare Health Plans, Inc. (NYSE:WCG), Humana Inc. (NYSE:HUM), Centene Corporation (NYSE:CNC), HealthSpring, Inc (NYSE:HS), and Universal American Corp. (NYSE:UAM).

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(Source: Xignite Financials)