Aetna Inc. (NYSE:AET) saw its shares rise modestly in pre-market trading after the health insurer again raised its 2017 profit forecasts despite reporting a decline in revenue in its latest quarter.
The NYSE-listed firm hiked its 2017 adjusted earnings per share prediction to US$9.75, up from a previous estimate of between US$9.45 and US$9.55 per share.
For the third quarter, Aetna reported adjusted net income up 11% to US$814mln, with adjusted earnings per share rising to US$2.45, up from US$2.07 a year earlier, and well above estimates for US$$2.09 per share.
The earnings rise came despite a 5% decline in total adjusted revenue over the period to US$14.95bn, missing forecasts for US$15.13bn, as fewer people were on the company's Affordable Care Act plans and due to the temporary suspension of the health insurer fee.
Aetna reported its third quarter earnings just days after media reports said pharmacy chain CVS Health Corp. (NYSE:CVS) was in discussions to purchase the health insurer for over US$66bn.
The deal, if approved by regulators, would help CVS grow its customer base for its drugstores and move into the health-care space.
In pre-market New York trading, Aetna shares were 0.5% higher at US$172.03.