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Aetna, Inc. (AET)

- NYSE
  • Thu, Mar. 19, 10:34 AM
    • According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
    • There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
    • No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
    • Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
    • Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
    • Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
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  • Fri, Feb. 27, 3:24 PM
    • Aetna (NYSE:AET) declares $0.25/share quarterly dividend, in line with previous.
    • Forward yield 1.0%
    • Payable April 24; for shareholders of record April 9; ex-div April 7.
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  • Mon, Feb. 23, 12:07 PM
    • Among the additions to the index (which fuels the IBLN ETF) are EMC, Google (GOOG, GOOGL), Goodyear (NASDAQ:GT), Mohawk Industries (NYSE:MHK), PVH, Time Warner (NYSE:TWX), and Yahoo (NASDAQ:YHOO). There are three health care additions as well: Allergan (NYSE:AGN), Amgen (NASDAQ:AMGN), and HCA. The lone energy name added is Consol Energy (NYSE:CNX).
    • Exiting the index are energy names Halliburton (NYSE:HAL) and National-Oilwell Varco (NYSE:NOV), along with healthcare companies AbbVie (NYSE:ABBV), Aetna (NYSE:AET), Humana (NYSE:HUM), and Tenet Healthcare (NYSE:THC). Citigroup (NYSE:C), CBS, Crown Castle (NYSE:CCI), and Michael Kors (NYSE:KORS) round out those subtracted.
    • IBLN tracks the highest-conviction S&P 500 picks by hot-handed billionaires who built their fortunes through hedge funds and investing. The list of billionaires tracked is updated each October, and the equity components are rebalanced each quarter after sifting through regulatory filings.
    • IBillionaire Index Rebalance
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  • Tue, Feb. 3, 8:56 AM
    • Aetna (AET +0.4%) Q4 results: Revenues: $14,771.2M (+12.0%); Operating Expenses: $3,071.4M (+22.5%); Net Income: $232M (-37.1%); EPS: $0.65 (-35.0%).
    • FY2014 results: Revenues: $58,003.2M (+22.6%); Operating Expenses: $10,837.7M (+25.4%); Net Income: $2,040.8M (+6.6%); EPS: $5.68 (+6.6%).
    • Medical Membership: 23,548 (+6.1%), Commercial: 19,822 (+5.3%), Medicare Advantage: 1,140 (+17.8%), Medicare Supplement: 462 (+19.7%), Medicaid: 2,124 (+5.4%).
    • Medical Benefit Ratios (MBRs): Commercial: 82% (+0.4%), Government: 84.4% (-3.0%); Healthcare: 83% (-1.1%).
    • MBRs FY2014 results: Commercial: 80.2% (+0.1%); Government: 84.9% (-3.0%); Healthcare: 82.2% (-0.8%).
    • 2015 Guidance: operating earnings per share of at least $7.00.
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  • Tue, Feb. 3, 6:03 AM
    • Aetna (NYSE:AET): Q4 EPS of $1.22 in-line.
    • Revenue of $14.77B (+12.5% Y/Y) beats by $170M.
    • Press Release
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  • Mon, Feb. 2, 5:30 PM
  • Wed, Jan. 28, 4:03 PM
    • A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
    • Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
    • The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
    • The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
    • Related tickers: (NYSE:AFL) (NYSE:AIG) (NYSE:AET) (NYSE:CI) (NYSE:CNC) (NYSE:UNH) (NYSE:ANTM) (NYSE:MOH) (NYSE:HNT) (NYSE:HUM) (NYSE:WCG) (NASDAQ:MGLN)
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  • Dec. 10, 2014, 5:48 PM
    • Aetna (NYSE:AET) -1% AH after issuing a weaker than expected earnings forecast for next year, saying it expects to make at least $6.90/share on revenue of at least $62B vs. analyst consensus estimates of $7.17/share on $61.7B in revenue.
    • AET reaffirms guidance for FY 2014 adjusted EPS of $6.60-$6.70 vs $6.65 analyst consensus, on expected operating revenues of $57B-$58B.
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  • Nov. 21, 2014, 3:07 PM
    • Alongside its 11.1% dividend increase, Aetna (AET +0.7%) adds $1B to the $464M left on its stock repurchase authorization. The extra $1B would be enough to buy back 11.6M shares, or 3.3% of the float at current prices.
    | 1 Comment
  • Nov. 21, 2014, 2:34 PM
    • Aetna, Inc. (NYSE:AET) declares $0.25/share quarterly dividend, 11.1% increase from prior dividend of $0.225.
    • Forward yield 1.16%
    • Payable Jan 30; for shareholders of record Jan 15; ex-div Jan 13.
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  • Nov. 3, 2014, 9:10 AM
    • Aetna (NYSE:AET) acquires privately-held bswift, a provider of a technology platform that offers a retail shopping experience for health insurance exchanges and employers nationwide. It also provides benefits administration technology and services to employers.
    • The purchase price is ~$400M and will be funded with cash on hand.
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  • Oct. 28, 2014, 10:09 AM
    • Aetna (AET +0.6%) Q3 results: Revenues: $14,727.8M (+13.0%); Health Care Premiums: 12,588.4 (+14.2%); Operating Expenses: $2,714.7M (+17.8%); Operating Expense Ratio: 18.4% (+4.0%); Operating Income: $638.6M (+5.7%); Net Income: $594.5M (+14.6%); EPS: $1.67 (+21.0%).
    • Medical Membership: 23,574 (+2.0%); Commercial: 19,893 (+2.0%); Medicare Advantage: 1,135 (+2.0%); Medicare Supplement: 448 (+3.2%); Medicaid: 2,098 (+2.1%).
    • Medical Benefit Ratios (MBRs): Commercial: 81% (+0.6%); Government: 84% (-3.4%); Healthcare: 82.3% (-1.0%).
    • 2014 Guidance: Operating Earnings Per Share of $6.60 - $6.70 from $6.45 - $6.60.
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  • Oct. 28, 2014, 9:30 AM
    • From this morning's call:
    • We continue to actively examine our experience for an uptick in utilization, specifically towards the newly approved all oral hepatitis seed treatments.
    • We also continue to closely monitor the outpatient category, particularly emergency department usage.
    • As we noted in September, the pharmacy category remains pressured, and the outpatient category continues to run towards the high end of our projected range.
    • But our inpatient physician and ancillary categories remain well-behaved.
    • Based on our year-to-date experience and revised full-year outlook, we currently project that Aetna's standalone 2014 commercial medical cost trend will now be in the middle- to upper-end of our original projected range of 6% to 7%.
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  • Oct. 28, 2014, 6:12 AM
    • Aetna (NYSE:AET): Q3 EPS of $1.79 beats by $0.21.
    • Revenue of $14.7B (+13.2% Y/Y) beats by $70M.
    • Press Release
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  • Oct. 27, 2014, 5:30 PM
  • Oct. 23, 2014, 3:14 PM
    • "I am as optimistic as I've been in a long time," says Don Wordell, noting the pull back in energy prices is a big economic stimulus. His RidgeWorth Mid-Cap Value Fund (MUTF:SAMVX) has topped 97% of peers over the last decade, and the $3.9B fund has returned 2.2% YTD - slightly ahead of the category average.
    • His top five picks: SanDisk (NASDAQ:SNDK) is off more than 10% over the last month, but demand for its products is strong and growing. Cigna (NYSE:CI) and Aetna (NYSE:AET) stand to profit as hiring picks up, and with it more people into the healthcare system. Baker Hughes (NYSE:BHI) has been especially beaten down along with the price of oil, but Wordell says this hasn't caused companies to scale back production plans. OshKosk (NYSE:OSK) has been weighed on by sluggish commercial construction, but Wordell says it's about to pick up.
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Company Description
Aetna Inc. is a health care benefit company, which offers traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans.
Sector: Healthcare
Country: United States