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Cigna (CI) Beats Earnings and Revenue Estimates in Q4
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Cigna Corp. (CI - Free Report) reported fourth-quarter 2016 operating net earnings of $1.87 per share, which surpassed the Zacks Consensus Estimate of $1.74. However, earnings remained flat year over year.
For 2016, the company reported adjusted operating net earnings per share of $8.10, down 6.5% year over year.
The company reported total operating revenue of $9.88 billion. The top line not only beat the Zacks Consensus Estimate of $9.59 billion but also grew 3.2% year over year.The upside was mainly driven by continued strong results in Cigna’s Commercial Healthcare and Global Supplemental Benefits businesses.
Total revenue in full-year 2016 amounted $39.7 billion, reflecting an increase of 5% from 2015. The upside was primarily driven by continued growth in Cigna's targeted customer segments.
Premiums of $7.6 billion increased 2.1% year over year, while mail order pharmacy revenues grew 10%.
The company had total medical customers of 15.2 million as of Dec 31, 2016.
Quarterly Review by Segment
Global Health Care segment: Premiums and fees from thesegment increased 2% year over year to $6.86 billion. The improvement was driven by customer growth, specialty contributions, and rate actions in the company’s Commercial employer group. However, the upside was partially offset by reductions in Medicare Part D and Individual customers.
Adjusted operating earnings were $406 million, up 3% year over year. After tax adjusted margin, however, remained flat at 5.2%.
Global Supplemental Benefits Segment: Premiums and fees from this segmentclimbed 8.5% year over year to $842 million on the back of continued business growth.
Adjusted operating income increased 16.7% year over year to $63 million. Post tax adjusted margin for this segment improved 50 basis points (bps) year over year to 7.2%. The upside was led by Cigna’s strategic investments to achieve long-term growth.
TheGlobal Disability and Life segment: Premiums and fees also increased 3.7% year over year to $1.03 billion, primarily driven by consistent business growth across disability and life products.
Adjusted operating income dropped nearly 17% year over year to $69 million. After tax adjusted margin also declined 150 bps year over year to 6.1%.
Corporate and Other Operations: This segment reported adjusted loss from operations of $53 million
Cigna Corporation Price, Consensus and EPS Surprise
As of Dec 31, 2016, cash and marketable investments at the parent company were $2.8 billion, up 100% year over year.
In 2016, Cigna repurchased 785,000 shares of common stock for approximately $110 million.
2017 Guidance
Cigna expects earnings per share in the range of $9.00–$9.50. It expects revenues to grow 2% to 3%. The company expects global medical customer growth in the range of 0.3 million to 0.5 million.
Cigna also anticipates adjusted income from operations for Global Health Care in the band of $2.03–$2.11 billion, Global Supplemental Benefits in the range of $295–$315 million and Group Disability and Life in the range of $200–$230 million. For the Corporate and other segment, the company expects an adjusted loss from operations of $180 million.
Among the other firms in the medical sector that have reported their fourth-quarter earnings so far, the bottom line at Aetna Inc. , HCA Holdings Inc (HCA - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
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Cigna (CI) Beats Earnings and Revenue Estimates in Q4
Cigna Corp. (CI - Free Report) reported fourth-quarter 2016 operating net earnings of $1.87 per share, which surpassed the Zacks Consensus Estimate of $1.74. However, earnings remained flat year over year.
For 2016, the company reported adjusted operating net earnings per share of $8.10, down 6.5% year over year.
The company reported total operating revenue of $9.88 billion. The top line not only beat the Zacks Consensus Estimate of $9.59 billion but also grew 3.2% year over year.The upside was mainly driven by continued strong results in Cigna’s Commercial Healthcare and Global Supplemental Benefits businesses.
Total revenue in full-year 2016 amounted $39.7 billion, reflecting an increase of 5% from 2015. The upside was primarily driven by continued growth in Cigna's targeted customer segments.
Premiums of $7.6 billion increased 2.1% year over year, while mail order pharmacy revenues grew 10%.
The company had total medical customers of 15.2 million as of Dec 31, 2016.
Quarterly Review by Segment
Global Health Care segment: Premiums and fees from thesegment increased 2% year over year to $6.86 billion. The improvement was driven by customer growth, specialty contributions, and rate actions in the company’s Commercial employer group. However, the upside was partially offset by reductions in Medicare Part D and Individual customers.
Adjusted operating earnings were $406 million, up 3% year over year. After tax adjusted margin, however, remained flat at 5.2%.
Global Supplemental Benefits Segment: Premiums and fees from this segmentclimbed 8.5% year over year to $842 million on the back of continued business growth.
Adjusted operating income increased 16.7% year over year to $63 million. Post tax adjusted margin for this segment improved 50 basis points (bps) year over year to 7.2%. The upside was led by Cigna’s strategic investments to achieve long-term growth.
TheGlobal Disability and Life segment: Premiums and fees also increased 3.7% year over year to $1.03 billion, primarily driven by consistent business growth across disability and life products.
Adjusted operating income dropped nearly 17% year over year to $69 million. After tax adjusted margin also declined 150 bps year over year to 6.1%.
Corporate and Other Operations: This segment reported adjusted loss from operations of $53 million
Cigna Corporation Price, Consensus and EPS Surprise
Cigna Corporation Price, Consensus and EPS Surprise | Cigna Corporation Quote
Financial Position
As of Dec 31, 2016, cash and marketable investments at the parent company were $2.8 billion, up 100% year over year.
In 2016, Cigna repurchased 785,000 shares of common stock for approximately $110 million.
2017 Guidance
Cigna expects earnings per share in the range of $9.00–$9.50. It expects revenues to grow 2% to 3%. The company expects global medical customer growth in the range of 0.3 million to 0.5 million.
Cigna also anticipates adjusted income from operations for Global Health Care in the band of $2.03–$2.11 billion, Global Supplemental Benefits in the range of $295–$315 million and Group Disability and Life in the range of $200–$230 million. For the Corporate and other segment, the company expects an adjusted loss from operations of $180 million.
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 firms in the medical sector that have reported their fourth-quarter earnings so far, the bottom line at Aetna Inc. , HCA Holdings Inc (HCA - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access.Click here for Zacks' private trades >>