Last Update: 12-Dec-12 07:56 ET
Aetna shares rise by 2% following FY12 guidance
Aetna (AET $45.20 +0.72) issues guidance for fiscal year 2012 sees EPS of ~$5.10, excluding non-recurring items, versus the $5.14 consensus and revenues of approximately $35.5 billion versus the $35.48 billion consensus Estimate. Year-end 2012 medical membership is projected to be ~18.2 million members. The company issued guidance for fiscal year 2012 with EPS of at least $5.40, excluding non-recurring items, versus the $5.52 consensus and revenues of +9% to ~$38.7 billion versus the $39.08 billion consensus Estimate. Medical membership is projected to remain flat in the first quarter of 2013, with projected March 31, 2013 medical membership of ~18.2 million members. By year-end 2013, Aetna projects that medical membership will increase to approximately 18.4 million members. With respect to medical cost trend, they remain confident in full-year 2012 Commercial medical cost trend projection of 6.5% +- 0.5%, our pricing and forecasting assumptions, and the adequacy of our reserves. In 2013, we project that full-year Commercial medical cost trend will remain at 6.5% +- 0.5%, as increased benefit buy-downs relative to 2012 levels and the absence of leap year impacts reduce year-over-year comparisons. YTD through Dec 7, 2012, Aetna repurchased approximately 26.6 million shares at a cost of ~$1.2 billion. Aetna projects that full-year 2012 repurchases will total approximately $1.4 billion.
Aetna (AET $45.20 +0.72) issues guidance for fiscal year 2012 sees EPS of ~$5.10, excluding non-recurring items, versus the $5.14 consensus and