Hartford Courant (CT)
Oct. 31--Aetna Inc. posted a nearly
11 percent jump in third-quarter profit on weak revenue Tuesday, while
remaining silent on reports that CVS Health Corp. is in talks to buy the
Hartford insurer.
Aetna credited for the
July-to-September period reduced losses in its Obamacare business and improved
performance across its core commercial business.
Executives immediately put an end to
any expectations of details about a possible deal with CVS. Chief
Executive
Officer Mark Bertolini and Joseph F. Krocheski, vice president of investor
relations, kicked off a conference call with analysts by ruling out comments on
"rumors or speculation."
"There's been a lot of
speculation in the media about Aetna," Bertolini said.
Aetna raised its profit guidance for
the year to about $9.75 per share, from an earlier range of $9.45 to $9.55.
That beats Wall Street estimates of $9.56 per share, according to analysts
surveyed by Bloomberg.
Adjusted earnings of $814 million, or
$2.45 per share, were up from $734 million, or $2.07 per share in the third
quarter of 2016, beating Wall Street estimates. Analysts expected adjusted net
income of $687 million, or $2.08 per share, according to analysts.
Revenue of $14.96 billion was down 5
percent from $15.78 billion. That was below the $15.12 billion expected by
analysts.
Shares rose more than 1 percent in
pre-market trading, to $173.50.
Chief Financial Officer Shawn Guertin
said the strength of Aetna's "core business fundamentals" in the
July-to-September period was due in part to a moderate medical cost trend.
The Wall Street Journal reported last
week a buyout offer of $200 a share, or $66 billion, from CVS. For Aetna, a
sale it could represent a big step toward a transforming digital future where
the insurer's vast trove of data plays a key role in personalized health.
Aetna announced last week it's
selling its disability and life insurance business to The Hartford.
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