Aetna Lifts FY17 Earnings View After Higher Q2 Profit - Quick Facts

(RTTNews) - Health insurer Aetna (AET) on Thursday said it has lifted earnings forecast for fiscal 2017, based on strong second quarter results.

Mark Bertolini, Aetna chairman and CEO, said, "Our strong second quarter results speak to our continued focus on disciplined pricing and execution of our targeted growth strategy. Based on our continued outperformance, we are once again increasing our full-year 2017 earnings projections."

For the year, the company now expects earnings on a reported basis of $5.46 to $5.56 per share and adjusted basis of $9.45 to $9.55 per share.

On average, 23 analysts polled by Thomson Reuters expected earnings of $8.99 per share for the year. Analysts' estimates typically exclude special items.

Previously, the company expected net income per share in the range of $4.48 to $4.68, and adjusted earnings per share of $8.80 to $9.00.

Shawn Guertin, Aetna executive vice president and CFO, said, "Our core businesses continued to outperform during the second quarter, carrying forward positive momentum from the start of the year. Additional 2017 earnings power allows us to improve our full-year outlook while also accelerating our timeline for targeted investments in growth initiatives."

In the second quarter, net income climbed 52 percent from last year to $1.2 billion, or $3.60 per share. Adjusted earnings were $1.12 billion, or $3.42 per share. Total revenues, meanwhile, declined 3 percent to $15.52 billion.

Analysts expected earnings of $2.35 per share on revenues of $15.39 billion.