Aetna says its second-quarter net income tumbled almost 15 percent, as rising medical costs countered revenue gains. But the health insurer's results still beat analysts' expectations and it raised its 2012 earnings forecast.
The Hartford, Conn., company reported net income of $457.6 million, or $1.32 per share, in the three months that ended June 30. That's down from $536.7 million, or $1.39 per share, a year ago. Revenue rose 6 percent to $8.84 billion.
Analysts forecast earnings of $1.25 per share on $8.75 billion in revenue.
Aetna now expects 2012 adjusted earnings to range between $5 and $5.10 per share. Analysts expect $5.04 per share.
Aetna is the third largest commercial health insurer based on both enrollment and revenue, trailing WellPoint and UnitedHealth.