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Cigna (CI) Beats Earnings and Revenue Estimates in Q3
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Cigna Corp. (CI - Free Report) reported third-quarter 2016 operating net earnings of $1.94 per share, which surpassed the Zacks Consensus Estimate of $1.91. However, earnings declined 15% year over year.
Revenues of $9.81 billion, surpassed the Zacks Consensus Estimate of $9.79 billion and grew 4.5% year over year.
Premiums of $7.6 billion increased 3.5% year over year, while mail order pharmacy revenues increased 18.5%.
Total Medical Customers totaled 15.2 million as of Sep 30, 2016. Cigna's global medical customers were 15.2 million, up 2.2% from 14.8 million members in the year-ago quarter. The improvement was driven by organic growth in Middle Market, Select and International markets.
Quarterly Review by Segment
Premiums and fees from theGlobal Health Care segment increased 3% year over year to $6.81 billion. Customer growth, specialty contributions, and rate actions in the company’s Commercial employer group drove the upside. However, the increase was partially offset by reductions in Medicare Part D and Individual customers. Operating earnings were $416 million, down 13.7% year over year. The company narrowed is adjusted income from operations expectation to the range of $1.84 billion to $1.87 billion from the previous expectation of $1.9 billion to $1.93 billion.
Premiums and fees from Cigna'sGlobal Supplemental Benefits climbed 9.5% year over year to $833 million and reflected the value created by affordable and personalized solutions delivered to individual consumers. Operating income increased 30.6% year over year to $81 million, reflecting business growth and strong operating expense discipline. The company expects adjusted income from operations in the range of $275–$285 million compared with the previous expectation of $255 million to $275 million.
TheGlobal Disability and Life segment’s premiums and fees also increased 4.5% year over year to $1.02 billion, primarily driven by consistent strong persistency and new sales. The segment posted operating earnings of $53 million compared with $84 million in the year-ago quarter. For 2016, adjusted income from operations is expected in the range of $80–110 million compared with the previous expectation of $40–$80 million.
2016 Guidance
Cigna updated its 2016 earnings guidance. It expects earnings per share in the range of $7.80 to $8.05 and mid-single-digit growth in revenue. The company expects global medical customer growth in a low-single-digit percentage range.
Among the other health insurers that have reported their third-quarter earnings so far, the bottom line at UnitedHealth Group Inc. (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Aetna Inc. beat their respective Zack Consensus Estimate.
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Cigna (CI) Beats Earnings and Revenue Estimates in Q3
Cigna Corp. (CI - Free Report) reported third-quarter 2016 operating net earnings of $1.94 per share, which surpassed the Zacks Consensus Estimate of $1.91. However, earnings declined 15% year over year.
Revenues of $9.81 billion, surpassed the Zacks Consensus Estimate of $9.79 billion and grew 4.5% year over year.
Premiums of $7.6 billion increased 3.5% year over year, while mail order pharmacy revenues increased 18.5%.
Total Medical Customers totaled 15.2 million as of Sep 30, 2016.
Cigna's global medical customers were 15.2 million, up 2.2% from 14.8 million members in the year-ago quarter. The improvement was driven by organic growth in Middle Market, Select and International markets.
Quarterly Review by Segment
Premiums and fees from the Global Health Care segment increased 3% year over year to $6.81 billion. Customer growth, specialty contributions, and rate actions in the company’s Commercial employer group drove the upside. However, the increase was partially offset by reductions in Medicare Part D and Individual customers. Operating earnings were $416 million, down 13.7% year over year. The company narrowed is adjusted income from operations expectation to the range of $1.84 billion to $1.87 billion from the previous expectation of $1.9 billion to $1.93 billion.
Premiums and fees from Cigna's Global Supplemental Benefits climbed 9.5% year over year to $833 million and reflected the value created by affordable and personalized solutions delivered to individual consumers. Operating income increased 30.6% year over year to $81 million, reflecting business growth and strong operating expense discipline. The company expects adjusted income from operations in the range of $275–$285 million compared with the previous expectation of $255 million to $275 million.
The Global Disability and Life segment’s premiums and fees also increased 4.5% year over year to $1.02 billion, primarily driven by consistent strong persistency and new sales. The segment posted operating earnings of $53 million compared with $84 million in the year-ago quarter. For 2016, adjusted income from operations is expected in the range of $80–110 million compared with the previous expectation of $40–$80 million.
2016 Guidance
Cigna updated its 2016 earnings guidance. It expects earnings per share in the range of $7.80 to $8.05 and mid-single-digit growth in revenue. The company expects global medical customer growth in a low-single-digit percentage range.
CIGNA CORP Price, Consensus and EPS Surprise
CIGNA CORP Price, Consensus and EPS Surprise | CIGNA CORP Quote
Zacks Rank and Performance of Other Insurers
Currently, 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 their third-quarter earnings so far, the bottom line at UnitedHealth Group Inc. (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Aetna Inc. beat their respective Zack Consensus Estimate.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>