By Maria Armental
Aetna Inc. on Wednesday issued a weaker-than-expected profit
forecast for next year, a day ahead of an investor conference.
The Hartford, Conn., insurer said it expects to make at least
$6.90 a share on revenue of at least $62 billion in 2015, compared
with estimates of $7.17 a share on $61.7 billion in revenue,
according to Thomson Reuters.
The insurer tends to issue conservative forecasts and repeatedly
raised its outlook for 2014 earlier this year. It affirmed those
projections Wednesday.
Health care companies have largely benefited from the new health
care law as newly insured patients seek treatment. HealthCare.gov's
second enrollment effort runs through Feb. 15.
Aetna has reported higher membership and revenue in recent
quarters, though medical costs also have risen, raising concerns
among some analysts.
Last month, the insurer raised its quarterly dividend by 11% to
25 cents a share and set aside an additional $1 billion to buy back
shares. It had previously authorized up to $464 million to buy back
shares.
Shares, flat in recent after-hours trading, closed at $87.67 on
Wednesday, up 28% for the year.
Write to Maria Armental at maria.armental@wsj.com
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