Aetna (AET) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $381 million, or $ 1.11 a share in the quarter, against a net profit of $737 million, or $2.08 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $939 million, or $2.71 a share compared with $821 million or $2.32 a share, a year ago.
Revenue during the quarter dropped 3.36 percent to $15,165 million from $15,693 million in the previous year period. Operating margin for the quarter stood at negative 4.14 percent as compared to a positive 8.21 percent for the previous year period.
Operating loss for the quarter was $628 million, compared with an operating income of $1,289 million in the previous year period.
"Our first quarter performance demonstrates the power of the disciplined execution of Aetna's strategy," said Mark T. Bertolini, Aetna chairman and chief executive officer. "This strong start to the year has enabled Aetna to absorb continued pressure from our individual Commercial products while increasing investment in our growth initiatives and raising our full-year 2017 earnings per share projections."
For financial year 2017, the company projects diluted earnings per share to be in the range of $4.48 to $4.68. The company projects diluted earnings per share to be in the range of $8.80 to $9 on adjusted basis.
Operating cash flow drops significantly
Aetna has generated cash of $899 million from operating activities during the quarter, down 49.80 percent or $ 892 million, when compared with the last year period.
The company has spent $56 million cash to meet investing activities during the quarter as against cash outgo of $177 million in the last year period.
The company has spent $14,962 million cash to carry out financing activities during the quarter as against cash outgo of $372 million in the last year period.
Cash and cash equivalents stood at $3,877 million as on Mar. 31, 2017, up 2.95 percent or $111 million from $3,766 million on Mar. 31, 2016.
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