Aetna (AET) Highlights From Q4 Conf Call: Expects Positive Benefits From Obama Administration

Earlier today, Aetna (NYSE: AET) reported Q4 earnings of $0.96 per share, above the consensus of $0.94. Revenues came in at $7.98 billion, versus the consensus of $7.96 billion. Aetna expectws FY09 EPS of $3.85-$3.95 versus the consensus of $3.87. Aetna is happy with its performance in absolute terms and compared to others in our industry.

Below are some highlights from Aetna's conference call today:
-17% health care revenue growth due to continued pricing discipline
-Net medical membership growth of 848,000 members or 5%
-Projects medical membership growth of 1.2 to 1.3 million members in Q1
-Expect FY09 operating earnings per share growth of 12 to 14%
-$100 million of liquidity
-Economic uncertainties may lead to higher than normal variability in Aetna's financial results.
-Aetna could benefit from Obama Administration's plan to enhance and improve Medicaid and other governmental programs. Aetna's thinks some of Medicaid rate pressure may diminish.
-Aetna's investment income was 6 cents lower than anticipated due to a Y-O-Y decline of 16% in Aetna's hedge fund investments.

Aetna rose 2.54% today and closed at $33.06.

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