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. ...