Aetna Sees Higher Operating Earnings In FY17, But Below Estimates - Quick Facts

(RTTNews) - Health insurer Aetna Inc. (AET) Tuesday said it expects fiscal 2017 net income per share to be at least $3.70, and operating earnings of at least $8.55 per share.

In fiscal 2016, the company's reported net income per share were $6.41 and operating earnings per share were $8.23.

On average, 21 analysts polled by Thomson Reuters expect earnings of $8.79 per share for the year. Analysts' estimates typically exclude special items.

Aetna is in deal to buy rival insurer Humana Inc, (HUM). However, the proposed merger with Humana was blocked recently by a U.S. Court.

Aetna now said although it is considering its options for responding to the trial court's ruling in the Department of Justice litigation, the projected full-year 2017 earnings represent a standalone scenario that assumes the termination of Aetna's merger agreement with Humana and Aetna's asset purchase agreement with Molina Healthcare, Inc.

Aetna Executive Vice President and Chief Financial Officer Shawn Guertin said, "Our 2016 results provide us with significant momentum and a positive outlook for the company in 2017. From a balance sheet perspective our financial position, capital structure, and liquidity all continue to be very strong."

In its fourth quarter, Aetna's attributable net income dropped 57 percent to $139 million or $0.39 per share. Operating earnings were $578 million or $1.63 per share, compared to $482million or $1.37 per share last year.

Total revenue increased 5 percent to $15.73 billion. Analysts expected earnings of $1.44 per share on revenues of $15.86 billion for the quarter.