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Will Cigna (CI) Maintain Its Beat Streak in Q3 Earnings?
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Cigna Corp. (CI - Free Report) is set to report third-quarter 2020 results on Nov 5, before the opening bell.
In the second quarter, the company’s earnings of $5.81 per share surpassed the Zacks Consensus Estimate by 15% and also grew 35% year over year. Results reflected revenue and earnings growth owing to a strong fundamental performance and lower medical costs from deferred care following the COVID-19 pandemic.
Q3 Estimates
The Zacks Consensus Estimate for this health insurance and pharmacy benefit manager’s quarterly earnings is pegged at $4.25 per share, indicating a 6.39% decline from the year-ago period’s reported figure.
The consensus mark for revenues stands at $39.14 billion, implying 9.22% growth from the year-ago quarter’s reported number. Factors Likely to Impact Q3 Results
Cigna’s third-quarter results are likely to reflect revenue growth on a strong fundamental performance. Earnings, however, are expected to have been hurt by higher medical costs from moderation in deferment of care, related to the COVID-19 pandemic.
In the Integrated Medical segment, results are likely to reflect lower quarterly earnings and a higher medical care ratio as patients were gradually returning to utilize healthcare services, which were deferred due to COVID-19.Revenues in the Health Services segment are likely to have grown on the back of insourcing Integrated Medical pharmacy volumes and strong organic growth including a continued uptrend in specialty pharmacy services.
In the International markets, revenue results are likely to reflect steady business growth, partially offset by an adverse foreign currency movement.
SG&A expenses might have moderated due to the company’s expense-saving measures.
Total medical customer base is expected to have declined due to membership attrition in National Accounts, partially offset by growth in Medicare Advantage and the Select and International Markets’ segments.
Earnings Surprise
The company boasts a stellar earnings surprise history. Its bottom line surpassed estimates in each of the trailing four quarters, the average being 6.86%. This is depicted in the graph below:
Our proven model predicts an earnings beat for Cigna this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is the case here.
Earnings ESP: Cigna has an Earnings ESP of +1.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Cigna carries a Zacks Rank #2 (Buy).
Other Stocks Worth a Look
Here are a few other healthcare stocks worth considering from the same space as these too have the right combination of elements to beat on earnings in the upcoming quarterly results.
CVS Healthcare (CVS - Free Report) has a Zacks Rank #3 and an Earnings ESP of +1.58%, currently.
Biohaven Pharmaceutical Holding Company (BHVN - Free Report) has an Earnings ESP of +0.53% and is Zacks #3 Ranked, presently.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Will Cigna (CI) Maintain Its Beat Streak in Q3 Earnings?
Cigna Corp. (CI - Free Report) is set to report third-quarter 2020 results on Nov 5, before the opening bell.
In the second quarter, the company’s earnings of $5.81 per share surpassed the Zacks Consensus Estimate by 15% and also grew 35% year over year. Results reflected revenue and earnings growth owing to a strong fundamental performance and lower medical costs from deferred care following the COVID-19 pandemic.
Q3 Estimates
The Zacks Consensus Estimate for this health insurance and pharmacy benefit manager’s quarterly earnings is pegged at $4.25 per share, indicating a 6.39% decline from the year-ago period’s reported figure.
The consensus mark for revenues stands at $39.14 billion, implying 9.22% growth from the year-ago quarter’s reported number.
Factors Likely to Impact Q3 Results
Cigna’s third-quarter results are likely to reflect revenue growth on a strong fundamental performance. Earnings, however, are expected to have been hurt by higher medical costs from moderation in deferment of care, related to the COVID-19 pandemic.
In the Integrated Medical segment, results are likely to reflect lower quarterly earnings and a higher medical care ratio as patients were gradually returning to utilize healthcare services, which were deferred due to COVID-19.Revenues in the Health Services segment are likely to have grown on the back of insourcing Integrated Medical pharmacy volumes and strong organic growth including a continued uptrend in specialty pharmacy services.
In the International markets, revenue results are likely to reflect steady business growth, partially offset by an adverse foreign currency movement.
SG&A expenses might have moderated due to the company’s expense-saving measures.
Total medical customer base is expected to have declined due to membership attrition in National Accounts, partially offset by growth in Medicare Advantage and the Select and International Markets’ segments.
Earnings Surprise
The company boasts a stellar earnings surprise history. Its bottom line surpassed estimates in each of the trailing four quarters, the average being 6.86%. This is depicted in the graph below:
Cigna Corporation Price and EPS Surprise
Cigna Corporation price-eps-surprise | Cigna Corporation Quote
What Our Model Says
Our proven model predicts an earnings beat for Cigna this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is the case here.
Earnings ESP: Cigna has an Earnings ESP of +1.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Cigna carries a Zacks Rank #2 (Buy).
Other Stocks Worth a Look
Here are a few other healthcare stocks worth considering from the same space as these too have the right combination of elements to beat on earnings in the upcoming quarterly results.
CVS Healthcare (CVS - Free Report) has a Zacks Rank #3 and an Earnings ESP of +1.58%, currently.
Cardinal Health (CAH - Free Report) has a Zacks Rank of 3 and an Earnings ESP of +0.66%, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Biohaven Pharmaceutical Holding Company (BHVN - Free Report) has an Earnings ESP of +0.53% and is Zacks #3 Ranked, presently.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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