Aetna Raises 2017 Profit View

(RTTNews) - Aetna (AET) said that it once again increased its full year 2017 earnings projections to reflect the continued strength of its operating results year to date.

For 2017, the company now expects earnings per share to be about $5.95, and adjusted earnings per share of about $9.75. The company said in August that it expected earnings to be $5.46 to $5.56 per share and adjusted earnings of $9.45 to $9.55 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $9.50 per share for 2017. Analysts' estimates typically exclude special items.

Net income was $838 million for third-quarter 2017 compared with $604 million for third-quarter 2016. The increase in net income during third-quarter 2017 was primarily due to the increase in adjusted earnings and lower transaction and integration-related costs in 2017 compared to 2016.

Adjusted earnings were $814 million for third-quarter 2017 compared with $734 million for third-quarter 2016. The increase in adjusted earnings during third-quarter 2017 was primarily due to continued strong performance in Aetna's Health Care segment.

Adjusted earnings for the quarter grew to $2.45 per share from $2.07 last year.

Total revenue and adjusted revenue were $15.0 billion and $14.9 billion, respectively, for third-quarter 2017 and were $15.8 billion and $15.7 billion, respectively, for third-quarter 2016. The decrease in total revenue and adjusted revenue during third-quarter 2017 was primarily due to lower premiums in Aetna's Health Care segment, including lower membership in Aetna's ACA compliant individual and small group products, and the temporary suspension of the health insurer fee in 2017.

Analysts expected the company to report earnings of $2.09 per share and revenues of $15.13 billion for the third-quarter.