So far in 2007, Aetna
Aetna reported Q3 operating earnings per share which not only topped Wall Street estimates, but also came in 15% above the year-ago results. The company also reported an 11% year-over-year increase in total revenue. Both of these improvements were attributable to membership gains as well as premium and fee increases. The insurer's commercial medical benefit ratio came in at 78.6%, which was essentially unchanged in comparison to its 2006 ratio for the same quarter.
The strong results enabled the company to slightly up its full-year operating EPS forecast for 2007, as well as project operating EPS for 2008 to come in 15% above its 2007 guidance. The earnings numbers also led shares almost 6% higher yesterday, which was impressive for a company that commands a market cap of $29 billion and operates in an industry that has not had "growth" written all over it in recent months.
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