The 10-second takeaway
For the quarter ended March 31 (Q1), Aetna beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Margins dropped across the board.
Aetna reported revenue of $8.86 billion. The 10 analysts polled by S&P Capital IQ anticipated revenue of $8.71 billion on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $8.39 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.34. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.40 per share on the same basis. GAAP EPS of $1.43 for Q1 were 4.7% lower than the prior-year quarter's $1.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.6%, 190 basis points worse than the prior-year quarter. Operating margin was 9.5%, 200 basis points worse than the prior-year quarter. Net margin was 5.7%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.77 billion. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $35.09 billion. The average EPS estimate is $5.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 578 members out of 625 rating the stock outperform, and 47 members rating it underperform. Among 194 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 give Aetna a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aetna is outperform, with an average price target of $53.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.