Aetna Inc. Boosts EPS Outlook Despite Negative Q1 Revenue Growth

Written by StockNews.com

Aetna Inc. (AET) early Tuesday posted mixed first quarter earnings results and lifted its full-year forecast, despite a downturn in revenue that missed expectations.

The Hartford, CT-based healthcare benefits giant reported Q1:

earnings per share (EPS) of $2.71, which was $0.36 better than the Wall Street consensus estimate of $2.35 [and]

revenues fell 3.4% from last year to $15.16 billion, however, missing analysts’ view for $15.39 billion.

Looking ahead, AET:

now expects a full-year EPS outlook…of $8.80 to 9.00, up from a prior $8.55 and in-line with analysts’ consensus estimate of $8.88.

The company commented via press release:

“This strong start to the year has enabled Aetna to absorb continued pressure from our individual Commercial products while increasing investment in our growth initiatives and raising our full-year 2017 earnings per share projections.”

…Year-to-date, AET has gained 10.95%, versus a 7.24% rise in the benchmark S&P 500 index during the same period….