S&P 500 (NYSE:SPY) component Aetna, Inc. (NYSE:AET) will unveil its latest earnings on Wednesday, July 27, 2011. 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. UnitedHealth Group Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise>>
Aetna, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.07 per share, a rise of 1.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.01. Between one and three months ago, the average estimate moved up, and has risen from $1.05 during the last month. For the year, analysts are projecting profit of $4.36 per share, a rise of 18.5% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 47 cents, reporting net income of $1.43 per share against a mean estimate of profit of 96 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $8.32 billion in revenue this quarter, a decline of 2.1% from the year ago quarter. Analysts are forecasting total revenue of $33.43 billion for the year, a decline of 1.7% from last year’s revenue of $34.02 billion.
Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 4.2% while it rose 30% in the fourth quarter of the last fiscal year and 52.5% in the third quarter of the last fiscal year.
A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 0.7% in the first quarter and fell 2.5% in the fourth quarter of the last fiscal year, 2.1% in the third quarter of the last fiscal year and 1.4% in the second quarter of the last fiscal year.
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).
Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had risen $3.67 (9.3%) from $39.55 to $43.22. It saw one of its worst periods between November 10, 2010 and November 18, 2010 when shares fell for seven-straight days, falling 5.5% (-$1.75) over that span. The stock price saw one of its best stretches over the last year between December 30, 2010 and January 12, 2011 when shares rose for 10-straight days, rising 7.9% (+$2.37) over that span. Shares are up $12.94 (+42.7%) year to date.
(Source: Xignite Financials)