A combination of corporate tax cuts and a pick-up in Aetna’s Medicare business drove Aetna’s per-share earnings to $3.03 per share, or $2.96 per share on an adjusted basis, which beat the consensus estimate of $2.83.
Its revenue, meanwhile, jumped 3% from last year to $15.5 billion, which also zipped past Wall Street’s expectation of $15.29 billion.
The country’s third-biggest insurer took a $130m pre-tax charge in the quarter that stemmed from an unfavorable arbitration ruling related to its departure from the Affordable Care Act’s insurance exchange marketplaces.
CVS Health is acquiring Aetna in a $69bn takeover, which is set to be finished prior to the end of the year. The merger got the go-ahead from the Department of Justice earlier this month after the pair of companies moved to address regulators’ concerns about the deal.
“Our combination with CVS Health will drive the next phase of Aetna’s growth and accelerate our opportunity to help transform the health care system,” noted Aetna CEO Mark Bertolini in a statement.
Aetna shares rose slightly in Tuesday's morning trade to hit $196.27.
Contact Ellen Kelleher at [email protected]