Have you been eager to see how Aetna Inc. performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hartford -based major health insurer’s earnings release this morning:
An Earnings Beat
Aetna came out with earnings of $3.19 per share, which beat the Zacks Consensus Estimate of $2.97. Also, earnings improved 17.7% over the prior year quarter.
The year-over-year improvement in earnings was attributable to strong performance across the company’s core businesses. Also, favorable prior-year reserve development more than offset higher than expected flu related medical costs.
Earnings Surprise History
Aetna has an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
Overall, the company has a positive earnings surprise of 19.6% in the trailing four quarters.
Revenue Lower Than Expected
Aetna recorded revenues of $15.22 billion, which missed the Zacks Consensus Estimate of $15.32 billion. Also, the metric declined 1.7% from the year-ago number of $15.49 billion.
Key Stats for Q1:
• Total expense ratio of 17.9% increased 190 basis points year over year.
• Pre-tax margin of 10.1% increased slightly by 10 basis points year over year.
• Debt to capitalization ratio was 35.8% compared with 37% as of Dec 31, 2017.
• The company’s total enrollment decreased to 47.9 million from 50.7 million in the year ago quarter.
What Zacks Rank Says
Aetna carries a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Aetna earnings report!
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Aetna (AET) Q1 Earnings Top, Revenues Miss Estimates
Have you been eager to see how Aetna Inc. performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hartford -based major health insurer’s earnings release this morning:
An Earnings Beat
Aetna came out with earnings of $3.19 per share, which beat the Zacks Consensus Estimate of $2.97. Also, earnings improved 17.7% over the prior year quarter.
The year-over-year improvement in earnings was attributable to strong performance across the company’s core businesses. Also, favorable prior-year reserve development more than offset higher than expected flu related medical costs.
Earnings Surprise History
Aetna has an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
Aetna Inc. Price and EPS Surprise
Aetna Inc. Price and EPS Surprise | Aetna Inc. Quote
Overall, the company has a positive earnings surprise of 19.6% in the trailing four quarters.
Revenue Lower Than Expected
Aetna recorded revenues of $15.22 billion, which missed the Zacks Consensus Estimate of $15.32 billion. Also, the metric declined 1.7% from the year-ago number of $15.49 billion.
Key Stats for Q1:
• Total expense ratio of 17.9% increased 190 basis points year over year.
• Pre-tax margin of 10.1% increased slightly by 10 basis points year over year.
• Debt to capitalization ratio was 35.8% compared with 37% as of Dec 31, 2017.
• The company’s total enrollment decreased to 47.9 million from 50.7 million in the year ago quarter.
What Zacks Rank Says
Aetna carries a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Aetna earnings report!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>