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New contract ensures in-network access for Aetna members

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Investors continued to cash in on recent gains as the dollar gained strength in overnight trading. 1st time unemployment claims for last week stayed unchanged at 505,000 as job growth remained elusive. The Dow fell 82 points to 10,343 while Nasdaq lost 24 points to 2168.

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Children's Place Retail Stores, Inc. (NASDAQ: PLCE) today announced its third-quarter net income of $37.8 million, or $1.37 a share. Net sales for 3Q was up to $463.2 million from $450.6 million same quarter last year compared to analysts estimates of $1.37 cents a share. Children's Place Retail Stores, Inc. (NASDAQ: PLCE) is up 0.37% to $35 in the pre-market. Yesterday PLCE closed at $34.87.

The Buckle, Inc. (NYSE: BKE) today reported third quarter net income of $33.3 million, or 73 cents a share and net sales of $231.2 million, up from $210.6 million in the third quarter of 2008. The Buckle, Inc. (NYSE: BKE) yesterday closed at $29.06. In 2009, BKE gained over 33%.

Brady Corporation (NYSE: BRC) today announced that for financial year 2009, it expects net income to be in the range of $85 - $95 million and diluted EPS to be in the range $1.60 - $1.80, while Reuter analysts is expecting BRC to announce net profit of $89 million and EPS of $1.73 for financial year 2009. Brady Corporation (NYSE: BRC) is now trading at $29.86, down 0.45% in the pre-market hours. The 52 week trading range for BRC is $14.39 - $33.10.

Aetna Inc. (NYSE: AET) declined 0.68% t0 $29.01 in the pre-mornings trading hours. Yesterday Aetna Inc. (NYSE: AET) announced that it has reduced its workforce by 1.8% and plans to reduce more after the end of first quarter as the company plans to align its cost structure.

The Blackstone Group L.P. (NYSE: BX) soared up 0.13% to $15.57 after Blackstone Group L.P.'s Pinnacle Brands Corp reported that it will buy Birds Eye Foods for more than $1.3 billion in cash deal. In the last six months, BX gained over 25%. Yesterday, BX closed at $15.55.

For Immediate Release

Chicago, IL – November 20, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Aetna Inc. (AET), UnitedHealth Group Inc. (UNH), WellPoint Inc. (WLP), Assurant Inc. (AIZ) and Cigna Corp. (CI).

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Here are highlights from Thursday’s Analyst Blog:

Aetna Axes Jobs

In a bid to become more efficient, the health insurer Aetna Inc. (AET) announced on Wednesday its intention to shed a total of 1,250 jobs or about 3.5% of its total workforce by the first quarter of 2010. Management intends to do so in two phases, by slashing 625 jobs now and the remaining early next year.

The company expects to record after-tax restructuring charges of $40 million in fourth quarter 2009. Last December, the company cut 1,000 jobs, which was 3% of its total workforce. The company plans to slash majority of the jobs at its headquarters in Connecticut.

Aetna with a total head count of 35,500 is eliminating jobs to cope with the difficult economic environment and potential impact that the health care reform might cast on its health insurance business. Elimination of excess workforce will help streamline the business by optimizing staffing level, thereby maintaining efficiency.

During the third quarter of 2009, Aetna earned $326.2 million, or 73 cents per share. That represents an increase from $277.3 million, or 58 cents per share, in the same quarter last year. Membership has slumped throughout the health insurance sector as employers have cut jobs, reducing the number of people covered by employer-sponsored plans.

Aetna rivals UnitedHealth Group Inc. (UNH) and WellPoint Inc. (WLP) both recently saw enrollment declines in the third quarter. Last week, Assurant Health, a division of Assurant Inc. (AIZ) announced that it has slashed 94 jobs. Earlier during the year, peers Cigna Corp. (CI) cut 1,100 jobs and Wellpoint Inc. eliminated nearly 1,500 jobs.

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Zacks Investment Research

In a bid to become more efficient, the health insurer Aetna Inc. (AET) announced on Wednesday its intention to shed a total of 1,250 jobs or about 3.5% of its total workforce by the first quarter of 2010. Management intends to do so in two phases, by slashing 625 jobs now and the remaining early [...]

($AET) Aetna Costs Costs by Slashing Jobs

In a bid to become more efficient, the health insurer Aetna Inc. (AET) announced on Wednesday its intention to shed a total of 1,250 jobs or about 3.5% of its total workforce by the first quarter of 2010. Management intends to do so in two phases, by slashing 625 jobs now and the remaining early next year. 

The company expects to record after-tax restructuring charges of $40 million in fourth quarter 2009. Last December, the company cut 1,000 jobs, which was 3% of its total workforce. The company plans to slash majority of the jobs at its headquarters in Connecticut . 

Aetna with a total head count of 35,500 is eliminating jobs to cope with the difficult economic environment and potential impact that the health care reform might cast on its health insurance business. Elimination of excess workforce will help streamline the business by optimizing staffing level, thereby maintaining efficiency. 

During the third quarter of 2009, Aetna earned $326.2 million, or 73 cents per share. That represents an increase from $277.3 million, or 58 cents per share, in the same quarter last year. Membership has slumped through out the health insurance sector as employers have cut jobs, reducing the number of people covered by employer-sponsored plans. 

Aetna rivals UnitedHealth Group Inc. (UNH) and WellPoint Inc. (WLP) both recently saw enrollment declines in the third quarter. Last week, Assurant Health, a division of Assurant Inc. (AIZ) announced that it has slashed 94 jobs. Earlier during the year, peers Cigna Corp (CI) cut 1,100 jobs and Wellpoint Inc. eliminated nearly 1,500 jobs.
Read the full analyst report on "AET"
Read the full analyst report on "CI"
Read the full analyst report on "AIZ"
Read the full analyst report on "WLP"
Read the full analyst report on "UNH"
Zacks Investment Research

Health Net’s (HNT) third-quarter earnings per share came in at 67 cents, well above the Zacks Consensus Estimate of 61 cents and the year-ago earnings of 35 cents. The company reported revenues of $4 billion, an increase of 3.9% compared to the corresponding quarter of last year. The company receives revenues in the form of [...]

($HNT) Health Net Beats Earnings Estimates

Health Net’s (HNT) third-quarter earnings per share came in at 67 cents, well above the Zacks Consensus Estimate of 61 cents and the year-ago earnings of 35 cents. The company reported revenues of $4 billion, an increase of 3.9% compared to the corresponding quarter of last year. The company receives revenues in the form of health plan service premiums, government contracts, net investment income and administrative services, fees and other income.

Health plan services premium, accounting for approximately 80% of total revenues during the quarter increased 3% year over year to $3.17 million. While revenues from government contracts increased 4.7% to $758 million, sequentially, it came down by 8.8%. We believe revenues from government contracts will decline further with the loss of contract in July with the Department of Defense awarding Aetna (AET) the $2.8 billion managed care contract to provide services for the northern region of the department's TRICARE program, replacing Health Net. However, Health Net protested against this move to the US Government Accounting Office; a final decision is yet to be taken.

In July, Health Net entered into an agreement with UnitedHealth Group (UNH) under which UnitedHealth acquired the northeast commercial operations of Health Net for about $510 million. We believe this decision was taken so that Health Net could concentrate on its core western markets.

At the end of the reported quarter, total health plan and total commercial risk enrollment were 3.6 million members, a decline of 3.8% and 166, 000 members, a decline of 8%, respectively compared with the year ago period. Apart from Medicaid enrollment, which increased 13.5% compared to the third quarter of 2008, enrollment in Medicare Advantage plan and Medicare PDP plans declined by 2.4% and 13.4%, respectively. The rise in Medicaid enrollment was the result of economic downturn, which causes the Medicaid-eligible population to increase.

Medical care ratio (MCR), calculating the amount paid in claims compared to premiums received for Health Net’s health plan services, declined to 86.4% during the quarter compared to 87.5% in the year ago period.

In addition to posting quarterly results, Health Net revised its outlook for 2009. The company now expects earnings per share at the lower end of its prior guidance, at $2.25 - $2.30 compared to the earlier guidance of $2.25 - $2.35. We believe higher costs related to the spread of H1N1 virus and expansion of COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) membership by laid-off workers made the company lower its outlook. Under COBRA, people can continue their employer sponsored insurance coverage even after they lose their jobs.

Read the full analyst report on "HNT"
Read the full analyst report on "AET"
Read the full analyst report on "UNH"
Zacks Investment Research

Schaeffer's Andrea Kramer takes a look at unusual option activity on the Street

Schaeffer's Laura Houser takes a look at activity on the Street after the market close

Ian Stansel takes a look back at the market activity today.

Have you ever passed up a good investment opportunity because the risk of losses was too painful to contemplate? Recently one of the newsletters we enjoy, The Casey Gold Stock Companion was making the case for a company named Crystallex International. This gold producer, which used to be one of Jim Cramer's favorites, seems to have most of their operations in Venezuela (horrors?) which could present some major problems or could just as easily make it a big upside surprise if they receive a final "Permit To Impact Natural Resources" from the government.

Two Wall Street Analysts Review Value Line's September 22, 2006 Edition