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Cigna (CI) Misses Q2 Earnings Estimate, Guides for 2016

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Cigna Corp. (CI - Free Report) is a national health benefits company with a comprehensive portfolio of businesses which includes Employee Healthcare, Disability and Life.

Its organizational efficiency plans as well as expansion of Seniors and Medicare business positions it well for long run.

Cigna has a large international presence, which provides diversification benefits.

Cigna was due to be acquired by Anthem Inc. The merger, would have helped Cigna (currently holding fourth rank) to leapfrog to the number one rank, in terms of membership in the U.S. health insurance industry. But the deal has been sued by the regulators and now remains on tenterhooks.

Cigna does have a decent history when it comes to earnings as the stock has beaten estimates in each of the last four reported quarters making for an average surprise of 5.93%.

Currently, Cigna has a Zacks Rank #3 (Hold), but that could definitely change following Cigna earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  Cigna missed the earnings estimate. Our consensus called for earning per share of $2.39, and the company reported earnings of $1.98 per share. Earnings per share was down 22.3% year over year.

Revenue: Revenues of $9.89 billion surpassed the Zacks Consensus Estimate of $9.78 billion. Revenues also grew 4.5% year over year.

Key Stats to Note:

Premiums of $7.6 billion increased 3% year over year. All the segments of the company – Global Health Care, Global Supplemental Benefits and Group Disability and Life – registered premium growth.

Total Medical Customers totaled 15.1 million as on Jun 30, 2016.

Cigna gave its 2016 earnings guidance. It expects earning per share is expected in the range of $7.75 to $8.10. It expects mid-single digit growth in revenue. Cigna expects global medical customer growth in low single digits percentage range.

CIGNA CORP Price and EPS Surprise

Check back later for our full write up on this CI earnings report later!

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