Cigna (CI) Q3 Earnings & Revenues Beat, Guidance Up

Cigna Corp. (NYSE:CI) came up with adjusted earnings per share of $3.84 in third-quarter 2018, beating the Zacks Consensus Estimate by 11.3%. The same was up 36% year over year. Strong performance across the company’s Global Health Care, Global Supplemental Benefits and Group Disability and Life businesses aided earnings.

Cigna posted revenues of $11.44 billion, surpassing the Zacks Consensus Estimate by 2%. Revenues grew 9% year over year led by strong business growth in Cigna's Global Healthcare and Global Supplemental Benefits segments.

Premiums were up 11% year over year to $9 billion, while fees increased 8.5% to $1.35 billion.

The company’s medical enrollment grew by 34,000 lives to 16.27 million customers driven by growth in Select, Individual and Middle Market segments.

Cigna Corporation Price, Consensus and EPS Surprise

Strong Segment Performance

Global Health Care: Operating revenues of $9.11 billion were up 11.5% year over year driven by Commercial customer growth and expansion of specialty relationships, as well as premium increases consistent with the underlying cost trends.

Adjusted operating earnings were $804 million, up 40% year over year was due to medical and specialty business growth, strong medical cost performance, a lower tax rate and favorable prior year reserve development.

Global Supplemental Benefits: Operating revenues of $1.09 billion were up 11% year over year, reflecting continued business growth in the company’s targeted markets.

Adjusted operating income decreased 14.7% year over year to $93 million, reflecting business growth and gains from expense management, which was more than offset by unfavorable claims experience.

Global Disability and Life: Operating revenues of $1.12 billion were up 2% year over year from solid disability performance and favorable life results.
Adjusted operating income increased 37% year over year to $100 million.

2018 Guidance Raised

For 2018, the company expects to earn in the range of $14.20 and $14.40 on a per share basis, (up 50 to 60 cents from the previous outlook range).

Total revenue growth is expected to grow in the range of approximately 8.5% compared with the previous growth range of 8% and medical customers are projected to grow by 0.4 million to 0.5 million lives, (unchanged from the previous forecast).

During the quarter, the U.S. Department of Justice has cleared Cigna's $52 billion acquisition of Express Scripts (NASDAQ:ESRX). The deal is expected to close by the end of the year 2018.

Zacks Rank and Other Releases

Cigna carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among the other health insurers that have reported third-quarter earnings so far, the bottom line of Anthem, Inc. (NYSE:ANTM) , Centene Corporation (NYSE:CNC) and UnitedHealth Group Incorporated (NYSE:UNH) beat the respective Zacks Consensus Estimate.

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