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LONDON, UK / ACCESSWIRE / February 08, 2018 / Active-Investors.com has just released a free earnings report on Aetna Inc. (NYSE: AET). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AET. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 30, 2018. The Health Insurer outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Aetna most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For Q4 2017, Aetna's total revenues and adjusted revenues were $14.9 billion and $14.7 billion, respectively, and were each at $15.7 billion for Q4 2016. The decrease in total revenues and adjusted revenues was primarily attributed to lower premiums in Aetna's Health Care segment, as well as the sale of Aetna's domestic group life insurance, group disability insurance, and absence management businesses (Group Insurance sale) on November 01, 2017. The Company's total revenue numbers exceeded analysts' expectations of $14.8 billion.
For the full-year FY17, Aetna's total revenues and adjusted revenues were $60.5 billion and $60.7 billion, respectively, compared to $63.2 billion and $63.0 billion, respectively, for FY16.
For Q4 2017, Aetna's effective tax rate was 51.7% compared to 53.5% for Q4 2016. The Company's effective tax rate was 36.3% for FY17 compared to 43.5% for FY16. Aetna's Q4 2017 and FY17 results each included an incremental tax expense of $99 million related to the estimated reduction in net deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA) in December 2017. Excluding the impact of the TCJA, the effective tax rate was 32.9% and 33.0% for Q4 2017 and FY17, respectively.
Aetna's net income was $244 million, or $0.74 per diluted share, in Q4 2017 compared to a net income of $139 million, or $0.39 per diluted share, in Q4 2016. The increase in earnings was primarily due to lower restructuring, transaction, and integration-related costs in FY17 compared to FY16. Aetna's adjusted earnings were $411 million, or $1.25 per share, for the reported quarter compared to $578 million, or $1.63 per share, for the year earlier same quarter. The Company's earnings beat Wall Street's estimates of $1.20 per share.
Aetna's net income was $1.9 billion, or $5.68 per share, for FY17 compared to $2.3 billion, or $6.41 per share, for FY16. The Company's adjusted earnings were $3.3 billion, or $9.86 per share, for FY17 compared to $2.9 billion, or $8.23 per share, for FY16.
During Q4 2017, Aetna's Health Care segment's total revenues were $14.5 billion compared to $15.0 billion for Q4 2016. The segment's adjusted revenues were $14.4 billion for the reported quarter versus $15.0 billion for the year earlier comparable quarter.
For Q4 2017, the Health Care segment's income before income taxes was $587 million compared to $905 million for Q4 2016. The segment's pre-tax adjusted earnings were $662 million in the reported quarter compared to $964 million in the year earlier corresponding quarter. The segment's days claims payable was 49 days at December 31, 2017; a decrease of five days compared to December 31, 2016.
During Q4 2017, Aetna's Group Insurance segment's total revenues were $324 million and $620 million for Q4 2017 and Q4 2016, respectively. The segment's adjusted revenues were $237 million and $621 million for Q4 2017 and Q4 2016, respectively. The decrease in total revenues and adjusted revenues were primarily due to the Group Insurance sale.
Aetna's Group Insurance segment's income before income taxes was $103 million for Q4 2017 compared to $36 million for Q4 2016. The segment's pre-tax adjusted earnings were $16 million for the reported quarter compared to $37 million for the year earlier same quarter.
Aetna's Large Case Pensions segment's total revenues were $74 million and $64 million for Q4 2017 and Q4 2016, respectively. The segment's adjusted revenues were $71 million in the reported quarter versus $64 million in the year earlier comparable quarter. The increase in total revenues and adjusted revenues was primarily due to higher premiums in Q4 2017.
The Large Case Pensions segment's income before income taxes was $6 million in Q4 2017 compared to $3 million for Q4 2016. The segment's pre-tax adjusted earnings were each $3 million for Q4 2017 and Q4 2016.
Aetna's total debt to consolidated capitalization ratio was 37.0% at December 31, 2017, compared to 53.6% at December 31, 2016. The Company's Health Care and Group Insurance cash flows used for operations were approximately $178 million during FY17.
Aetna's cash and investments at the parent were approximately $2.2 billion at December 31, 2017. Net subsidiary dividends to the parent, including the proceeds received from the Group Insurance sale, were $2.1 billion in the reported quarter. During Q4 2017, Aetna repaid $1.0 billion in debt and paid a shareholder dividend of $163 million. After other sources and uses, Aetna ended Q4 2017 with approximately $2.2 billion of cash and investments at the parent.
Suspended Share Repurchase
On December 03, 2017, Aetna and CVS Health Corp. announced a definitive merger agreement under which CVS Health will acquire all of the outstanding shares of Aetna. The transaction is expected to close in H2 2018. As a result of the pending CVS Health transaction, Aetna has suspended repurchases of its common shares.
Stock Performance Snapshot
February 07, 2018 - At Wednesday's closing bell, Aetna's stock slightly dropped 0.29%, ending the trading session at $181.49.
Volume traded for the day: 2.11 million shares.
Stock performance in the last three-month – up 2.57%; previous six-month period – up 16.14%; past twelve-month period – up 50.40%; and year-to-date – up 0.61%
After yesterday's close, Aetna's market cap was at $59.95 billion.
Price to Earnings (P/E) ratio was at 31.54.
The stock has a dividend yield of 1.10%.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry.
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