Aetna Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

Aetna AET releases its next round of earnings this Wednesday, July 27, 2011. Here's Benzinga's advanced look at Aetna's second quarter earnings report.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.07 per share and revenues of $8.32 billion. Wall Street will be looking to see how this quarter's numbers compare to the year-ago quarter's positive EPS of $1.05 per share on revenues of $8.5 billion. We'll have to wait for Wednesday to see if Aetna reports a rise in EPS and revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.96	$0.61	$0.67	$0.73
EPS Actual	$1.43	$0.63	$0.84	$1.05

Stock Performance:

Shares of Aetna were trading at $43.22 as of July 21, 2011. Since January 1st, shares of Aetna have given investors a return of 42.7%. For a full 12 months, the return has risen by 41.2%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Aetna is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how some of the other healthcare companies are doing? Here are a few of Aetna's peers in that sector.

• CIGNA CI: Hold with a $1.37 recent quarter EPS
• Centene CNC: Hold with a $0.46 recent quarter EPS
• Coventry Health Care CVH: Hold with a $0.66 recent quarter EPS
• Health Net HNT: Hold with a $0.61 recent quarter EPS

The medical-HMO company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Aetna Inc. is a health insurance company. It provides its customers, ranging from individuals to employer groups to governmental units, with traditional and consumer-directed health care benefits products and related services, such as medical, pharmaceutical, dental, behavioral health, group life and disability plans.

Take Action:

That's your advanced look at Aetna's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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