Aetna says 2Q profit will beat Street outlook

Hartford health insurer Aetna Inc. said Thursday it expects to exceed Wall Street's profit expectations for its second quarter in part because health care costs from the first quarter are coming in lower than expected, The Wall St. Journal reports.

Aetna said its operating earnings per share for the quarter, which ends June 30, will be greater than the average of 68 cents per share that analysts expect, according to Thomson Reuters.

Aetna is the third-largest publicly traded managed care company based on membership and revenue, trailing UnitedHealth and WellPoint. Health insurance is its main product, but the insurer also sells dental, group life and disability coverage.

Aetna said in April its first-quarter profit grew 29 percent to $562.6 million, or $1.28 per share, largely because leftover claims from the previous quarter came in lower than expected.

The company also raised its 2010 operating profit forecast then to a range of $2.75 to $2.85 per share, up from a previous forecast of $2.55 to $2.65.

Analysts expect about $2.89 per share, on average.

The insurer will update its 2010 profit guidance when it discusses second-quarter earnings July 28.

Aetna shares climbed 78 cents, or 2.7 percent, to $30.10 in morning trading.