Aetna Posts Earnings Beat on Government Strength, Raises Forecast - Video - TheStreet

Aetna Posts Earnings Beat on Government Strength, Raises Forecast

Health insurer Aetna reported better-than-expected earnings for the third quarter and raised its 2014 forecast.
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Health insurer Aetna reported better-than-expected earnings for the third quarter and raised its 2014 forecast. The company posted operating earnings of $1.79 a share, beating analyst expectations of $1.58. Aetna raised its earnings forecast for the year to a range of $6.60 to $6.70 a share, from the previous outlook of $6.45 to $6.60. The insurer cited strong performance in its government business. Government and group insurance medical loss ratio beats were able to offset a weaker commercial medical loss ratio. Leerink analyst Ana Gupte said the magnitude of the earnings per share beat and raised forecast will likely overcome any concern about the commercial medical loss ratio result. She has an Outperform rating on the stock.