Aetna (NYSE: AET) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Aetna met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins contracted across the board.
Revenue details
Aetna reported revenue of $8.90 billion. The 12 analysts polled by S&P Capital IQ foresaw revenue of $8.89 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $8.48 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.55. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.34 per share. GAAP EPS of $1.49 for Q3 were 15% higher than the prior-year quarter's $1.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 28.6%, 280 basis points worse than the prior-year quarter. Operating margin was 9.8%, 140 basis points worse than the prior-year quarter. Net margin was 5.6%, 20 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $9.00 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $35.50 billion. The average EPS estimate is $5.08.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 588 members out of 635 rating the stock outperform, and 47 members rating it underperform. Among 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 give Aetna a green thumbs-up, and 10 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 $49.59.
- Add Aetna to My Watchlist.
