Aetna Tops Expectations By Four Cents

Earnings Scorecard
Actual	Estimated*	Year-Ago
$0.20	$0.16	$0.55

Aetna (AET Quote) reported fourth-quarter earnings that beat analysts' expectations by four cents, but said earnings fell about 65% due to higher medical costs.

The nation's largest health insurer, which recently divested its financial services and international businesses, said fourth-quarter earnings from continuing operations were $28.7 million, or 20 cents a share, down from $81 million, or 55 cents a share, in the same period last year. Three analysts polled by First Call/Thomson Financial expected the company to earn 16 cents a share for the quarter.

Quarterly revenue was $6.6 billion, down from $6.7 billion a year ago, which the Hartford, Conn.-based Aetna said reflects the lower health membership levels in its PHC business.

The company also said this morning it plans to eliminate unprofitable membership in Medicare as well as carry out other cost-reducing measures.

Its shares closed at $40 on Monday's trading on the Big Board, close to its 52-week low of $32.94.