Aetna Turns To Profit In Q1, Adj. Profit Tops View

(RTTNews) - Aetna Inc. (AET) reported that its net income attributable to the company was $1.21 billion or $3.67 per share for first-quarter 2018 compared with a net loss of $381 million or $1.11 per share for first-quarter 2017. The increase in net income during first-quarter 2018 compared with a net loss during first-quarter 2017 was primarily due to first-quarter 2017 reflecting costs associated with the termination of the Humana Merger Agreement and the increase in adjusted earnings.

Adjusted earnings were $1.1 billion or $3.19 per share for first-quarter 2018 compared with $939 million or $2.71 per share for first-quarter 2017. The increase in adjusted earnings during first-quarter 2018 was primarily due to the favorable impact of the Tax Cuts and Jobs Act of 2017. Analysts polled by Thomson Reuters expected the company to report earnings of $2.97 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue was $15.3 billion for first-quarter 2018 compared with $15.2 billion for first-quarter 2017. Wall Street expected revenues of $15.29 billion for the quarter. The increase in total revenue was primarily due to first-quarter 2017 reflecting a realized capital loss of $336 million pre-tax due to unamortized cash flow hedge losses being recognized into earnings upon the redemption of certain of Aetna's senior notes, largely offset by the decrease in adjusted revenue

Adjusted revenue was $15.2 billion for first-quarter 2018 compared with $15.5 billion for first-quarter 2017. The decrease in adjusted revenue was primarily due to the sale of Aetna's domestic group life insurance, group disability insurance and absence management businesses during fourth-quarter 2017, partially offset by higher adjusted revenue in Aetna's Health Care segment.