Aetna Q2 Profit Rises - Quick Facts

(RTTNews) - Diversified healthcare benefits company Aetna, Inc. (AET) reported higher profit in the second quarter of 2014 boosted by strong revenue growth.

For the quarter, net income attributable to the company was $548.8 million or $1.52 per share, higher than last year's $536.0 million or $1.49 per share. The latest results include $0.17 per share of net charges, the company said.

Three-month operating earnings totaled $610.0 million, or $1.69 per share, compared with $582.6 million, or $1.62 per share, in the second quarter of 2013, due to the inclusion of approximately one additional month of Coventry financial results in 2014 as well as higher underwriting margins in its Group Insurance segment partially offset by the year-on-year decline in favorable development of prior-period health care cost estimates in 2014. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.60 per share for the quarter. Analysts' estimates typically exclude special items.

Second-quarter operating revenues reached $14.5 billion, up 25 percent, compared with $11.6 billion a year ago, supported by higher Health Care premiums from approximately one additional month of revenue in 2014 from the Coventry acquisition, membership growth in its Health Care businesses and the effects of pricing actions designed to recover Health Care Reform mandated fees and taxes. Total revenue was $14.5 billion and $11.5 billion for the second quarters of 2014 and 2013, respectively. Analysts estimated revenues of $13.99 billion for the quarter.

Looking ahead, Aetna's Chairman, CEO and President noted: "Based on our second-quarter performance, we are raising our projection for full-year 2014 operating earnings per share to a range of $6.45 to $6.60 from our previous projection of $6.35 to $6.55 per share." Analysts currently project earnings of $6.54 per share for 2014.