Aetna's 1Q profit jumps 36 pct, forecast climbs

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Associated Press

Posted on April 24, 2014 at 6:00 AM

Updated Thursday, Apr 24 at 6:02 AM

Aetna says its first-quarter net income soared 36 percent, fueled by gains from a multi-billion-dollar acquisition. The health insurer raised its 2014 earnings forecast.

The Hartford, Conn., insurer earned $665.5 million, or $1.82 per share, in the January-March period. That's up from $490.1 million, or $1.48 per share, a year earlier.

Adjusted earnings totaled $1.98 per share, not counting charges. Analysts forecast earnings of $1.53 per share.

Revenue jumped 47 percent to $13.99 billion. Analysts expected about $13.6 billion in revenue.

Aetna closed its $6.9 billion acquisition of Medicare and Medicaid coverage provider Coventry Health Care last May.

The insurer says it now expects 2014 adjusted earnings to range between $6.35 and $6.55 per share. It had previously forecast at least $6.25 per share.

Analysts expect $6.31 per share.

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