Cigna Corp. (CI - Free Report) came up with adjusted earnings of $4.54 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate by 2.9%. Quarterly earnings were up 75% year over year.
Cigna’s revenues of $36.6 billion beat the Zacks Consensus Estimate by 3.7%. Revenues grew 167% year over year owing to the acquisition of Express Scripts.
Among the revenue components, pharmacy revenues were $25.6 billion compared with $3.3 billion in the year-ago quarter, premiums were up 9.8% year over year to $10 billion while fees increased 50.2% to $2.2 billion. The growth in pharmacy revenues was backed by the acquisition of pharmacy benefit manager Express Scripts.
The company’s medical enrollment grew by 184,000 lives from the prior-year quarter to 17.15 million customers, driven by growth in Commercial and International markets.
Cigna Corporation Price, Consensus and EPS Surprise
Segment Details
Health Services – Adjusted revenues of $25.6 billion were up from $3.3 billion in the year-ago quarter, primarily due to the acquisition of Express Scripts completed in December 2018.
Integrated Medical – Adjusted revenues of $9.2 billion were up 11% year over year, driven by increase in Commercial customer as well as premium growth.
International Markets – Adjusted revenues of $1.43 billion were up 5.5% year over year, reflecting continued business growth.
Capital Position
Cigna’s debt-to-capitalization ratio improved to 45.2% as on Dec 31, 2019, from 50.9% as of Dec 31, 2018.
Shareholders’ equity as of Dec 31, 2019 was $45.3 billion, up 10.5% year over year.
2020 Guidance
The company expects earnings per share in the range of $18-$18.6; adjusted revenues in the range of $154 billion to $156 billion. Medical customers are projected to grow between 150,000 and 250,000.
Medical care ratio is expected in the range of 80.2-81.2%.
Cigna carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks in the healthcare space that have reported fourth-quarter earnings so far, UnitedHealth Group Inc. (UNH - Free Report) and Humana Inc. (HUM - Free Report) beat earnings estimates by 3.45% and 3.64%, respectively, while Centene Corp. (CNC - Free Report) missed the same by 1.4%.
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Cigna Corp. (CI - Free Report) came up with adjusted earnings of $4.54 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate by 2.9%. Quarterly earnings were up 75% year over year.
Cigna’s revenues of $36.6 billion beat the Zacks Consensus Estimate by 3.7%. Revenues grew 167% year over year owing to the acquisition of Express Scripts.
Among the revenue components, pharmacy revenues were $25.6 billion compared with $3.3 billion in the year-ago quarter, premiums were up 9.8% year over year to $10 billion while fees increased 50.2% to $2.2 billion. The growth in pharmacy revenues was backed by the acquisition of pharmacy benefit manager Express Scripts.
The company’s medical enrollment grew by 184,000 lives from the prior-year quarter to 17.15 million customers, driven by growth in Commercial and International markets.
Cigna Corporation Price, Consensus and EPS Surprise
Segment Details
Health Services – Adjusted revenues of $25.6 billion were up from $3.3 billion in the year-ago quarter, primarily due to the acquisition of Express Scripts completed in December 2018.
Integrated Medical – Adjusted revenues of $9.2 billion were up 11% year over year, driven by increase in Commercial customer as well as premium growth.
International Markets – Adjusted revenues of $1.43 billion were up 5.5% year over year, reflecting continued business growth.
Capital Position
Cigna’s debt-to-capitalization ratio improved to 45.2% as on Dec 31, 2019, from 50.9% as of Dec 31, 2018.
Shareholders’ equity as of Dec 31, 2019 was $45.3 billion, up 10.5% year over year.
2020 Guidance
The company expects earnings per share in the range of $18-$18.6; adjusted revenues in the range of $154 billion to $156 billion. Medical customers are projected to grow between 150,000 and 250,000.
Medical care ratio is expected in the range of 80.2-81.2%.
Cigna carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks in the healthcare space that have reported fourth-quarter earnings so far, UnitedHealth Group Inc. (UNH - Free Report) and Humana Inc. (HUM - Free Report) beat earnings estimates by 3.45% and 3.64%, respectively, while Centene Corp. (CNC - Free Report) missed the same by 1.4%.
"More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
"
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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