Aetna 2010 operating earnings to be below 2009 figures
By Eric Savitz
Aetna (AET) shares are down today after the company issued a statement that 2010 operating earnings are likely to be down from 2009 figueres. The company affirmed its previous 2009 guidance of $2.75 a share.
The Street consensus for next year had been for $3.09 a share.
Aetna CFO Joseph Zubretsky was to make the forecast today at a presentaton at the J.P, Morgan health care conference in San Francisco.
According to a slide deck prepared for the presentation the company’s view is “2010 challenges outweigh opportunities.” Here’s there list from both sides of the ledger:
- In-Group attrition.
- High COBRA costs.
- Medical cost pressures.
- Pricing pressures.
- Uncertain risk membership.
- Lower Medicare reimbursement.
- Increased SG&A costs.
- Pricing actions.
- Medical quality and cost management.
- Aligning costs with membership.
- Higher excess capital
AET today is down$1.72, or 5.3%, to $31.02.