AET - Free Research Report as Aetna's Adjusted Earnings Jumped 14%
Stock Monitor: WellCare Health Plans Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 25, 2018 / If you want access to our free earnings report on Aetna Inc. (NYSE: AET), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AET. The Company reported its first quarter fiscal 2018 operating and financial results on May 01, 2018. The health insurer surpassed earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for WellCare Health Plans, Inc. (NYSE: WCG), which also belongs to the Healthcare sector as the Company Aetna. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/?symbol=WCG
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Aetna most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=AET
Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Aetna's total revenues were $15.34 billion, up 1% compared to $15.17 billion in Q1 2017; and just shy of analysts' estimates of $15.35 billion. The Company's adjusted revenues were $15.2 billion in the reported quarter compared to $15.5 billion in the prior year's same quarter. The decrease in adjusted revenues was primarily due to the sale of Aetna's domestic group life insurance, group disability insurance, and absence management businesses (Group Insurance sale) during Q4 2017.
During Q1 2018, Aetna's total Company expense ratio was 18.2% compared to 25.4% in Q1 2017, with the improvement primarily due to the ratio for Q1 2017 reflecting the costs associated with the termination of the Humana merger agreement, partially offset by the reinstatement of the health insurer fee (HIF) for 2018. The Company's adjusted expense ratios were 17.9% and 16.0% for Q1 2018 and Q1 2017, respectively.
Aetna's net income was $1.21 billion, or $3.67 per share, in Q1 2018 compared to a net loss of $381 million, or $1.11 loss per share, in Q1 2017. The Company's adjusted earnings were $1.05 billion, or $3.19 per share, in the reported quarter versus $939 million, or $2.79 per share, in the prior year's comparable quarter. The increase in adjusted earnings was primarily due to the favorable impact of the Tax Cuts and Jobs Act 2017 (TCJA). Aetna's earnings beat Wall Street's estimates of $2.97 per share.
For Q1 2018, Aetna's effective tax rate was 16.8%, down compared to 39.6% in Q1 2017, primarily due to the reduced corporate income tax rate specified in the TCJA and a non-recurring tax benefit recorded in Q1 2018.
Segment Results
During Q1 2018, Aetna's Health Care segment, which provides a full range of insured and self-insured medical, pharmacy, dental, and behavioral health products and services, reported total revenues and adjusted revenues of $15.1 billion compared to $14.8 billion in Q1 2017. The increase in total revenues and adjusted revenues was primarily due to a membership growth in Aetna's Medicare products, the adoption of a new accounting guidance related to revenue recognition, and the favorable impact of the reinstatement of the HIF for 2018.
For Q1 2018, the Health Care segment's income before income taxes was $1.4 billion compared to $1.2 billion in Q1 2017. The segment's pre-tax adjusted earnings remained relatively consistent at approximately $1.5 billion for Q1 2018 and Q1 2017. The segment's reported quarter results were favorably impacted by Aetna's exit from individual Commercial products and by a membership growth in its Medicare products.
For Q1 2018, the segment's Healthcare's medical benefit ratios (MBRs) were 80.4% compared to 82.5% in Q1 2017. The segment's Total Healthcare MBRs were negatively impacted by approximately 50 basis points compared to Q1 2017, due to higher medical costs because of a severe flu season during Q1 2018.
Aetna's Commercial division's MBRs decreased to 77.5% in the reported quarter compared to 79.3% in the year earlier corresponding quarter, due to the reinstatement of the HIF for 2018 and Aetna's exit from individual Commercial products for 2018.
For Q1 2018, Aetna's Government division's MBRs decreased to 82.6% from 85.3% in Q1 2017, primarily due to the reinstatement of the HIF for 2018.
Aetna's days claims payable was 50 days at March 31, 2018, reflecting a decrease of 3 days compared to March 31, 2017. The y-o-y drop was driven primarily by changes in business.
Cash Matters
Aetna's operating cash flow, excluding large case pensions products, as a percentage of net income was 282.5% in Q1 2018. The Company's cash and investments at the parent were approximately $2.3 billion at March 31, 2018. Aetna's total debt to consolidated capitalization ratio decreased to 35.8% at March 31, 2018, compared to 37.0% at December 31, 2017.
Stock Performance Snapshot
May 24, 2018 - At Thursday's closing bell, Aetna's stock marginally fell 0.12%, ending the trading session at $177.12.
Volume traded for the day: 1.16 million shares.
Stock performance in the last three-month - up 0.89%; previous six-month period - up 0.38%; and past twelve-month period - up 23.05%
After yesterday's close, Aetna's market cap was at $58.01 billion.
Price to Earnings (P/E) ratio was at 16.35.
The stock has a dividend yield of 1.13%.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry.
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