We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cigna (CI) to Post Q1 Earnings: Will It Deliver a Beat?
Read MoreHide Full Article
Cigna Corporation (CI - Free Report) is set to report first-quarter 2021 results on May 7, before the opening bell.
In the fourth quarter of 2020, the company’s earnings of $3.51 per share missed the Zacks Consensus Estimate by 4.1% and also declined 18.6% year over year. Results suffered escalated COVID-related costs.
Factors to Note
Strong performances across its Evernorth, U.S. Medical and International Markets businesses are likely to have contributed to the March-quarter’s revenues.
Delving deeper into the company’s segments, the Evernorth unit, which was rebranded in September 2020, might have gained momentum from a growing customer base and higher pharmacy scripts volumes in the to-be-reported quarter. Revenues are likely to have been driven by the insourcing of U.S. Medical pharmacy volumes and strong organic growth including strength in retail network and a progress in specialty pharmacy services.
The U.S. Medical business is likely to have benefited on the back of customer growth across the company’s Select segment and Medicare Advantage business, and a rise in premiums and return of the health insurance tax. However, continuity in pandemic-related costs and persistent dislocation across the broader labor market inducing slightly higher commercial disenrollment might have weighed on the company’s first-quarter performance.
The International Markets business revenues are likely to have shown consistent growth. Operating earnings might have taken a hit from steep costs incurred to support customers and employees, and heavy investments made in the business to boost prospects.
Numerous cost-curbing initiatives might have offset the company’s SG&A expenses to some extent in the to-be-reported quarter.
Q1 Estimates
The Zacks Consensus Estimate for the company’s earnings is pegged at $4.42 per share, indicating a decline of 5.76% from the year-ago quarter’s reported figure.
The consensus mark for revenues stands at $40.58 billion, indicating rise of 5.71% from the prior-year quarter’s reported number.
Earnings Surprise History
The company boasts a stellar earnings surprise track. Its bottom line surpassed estimates in three of the trailing four quarters (missed the mark in one), the average surprise being 5.09%. This is depicted in the chart below:
Our proven model predicts an earnings beat for Cigna this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cigna has an Earnings ESP of +1.01%. This is because the Most Accurate Estimate of $3.73 is pegged higher than the Zacks Consensus Estimate of $3.66. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some other stocks worth considering from the healthcare space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Adamas Pharmaceuticals, Inc. has an Earnings ESP of +1.26% and a Zacks Rank of 3, currently.
Kodiak Sciences Inc. (KOD - Free Report) has an Earnings ESP of +28.31% and is presently Zacks #3 Ranked.
Catalyst Biosciences, Inc. has an Earnings ESP of +13.64% and is a #3 Ranked player at present.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Cigna (CI) to Post Q1 Earnings: Will It Deliver a Beat?
Cigna Corporation (CI - Free Report) is set to report first-quarter 2021 results on May 7, before the opening bell.
In the fourth quarter of 2020, the company’s earnings of $3.51 per share missed the Zacks Consensus Estimate by 4.1% and also declined 18.6% year over year. Results suffered escalated COVID-related costs.
Factors to Note
Strong performances across its Evernorth, U.S. Medical and International Markets businesses are likely to have contributed to the March-quarter’s revenues.
Delving deeper into the company’s segments, the Evernorth unit, which was rebranded in September 2020, might have gained momentum from a growing customer base and higher pharmacy scripts volumes in the to-be-reported quarter. Revenues are likely to have been driven by the insourcing of U.S. Medical pharmacy volumes and strong organic growth including strength in retail network and a progress in specialty pharmacy services.
The U.S. Medical business is likely to have benefited on the back of customer growth across the company’s Select segment and Medicare Advantage business, and a rise in premiums and return of the health insurance tax. However, continuity in pandemic-related costs and persistent dislocation across the broader labor market inducing slightly higher commercial disenrollment might have weighed on the company’s first-quarter performance.
The International Markets business revenues are likely to have shown consistent growth. Operating earnings might have taken a hit from steep costs incurred to support customers and employees, and heavy investments made in the business to boost prospects.
Numerous cost-curbing initiatives might have offset the company’s SG&A expenses to some extent in the to-be-reported quarter.
Q1 Estimates
The Zacks Consensus Estimate for the company’s earnings is pegged at $4.42 per share, indicating a decline of 5.76% from the year-ago quarter’s reported figure.
The consensus mark for revenues stands at $40.58 billion, indicating rise of 5.71% from the prior-year quarter’s reported number.
Earnings Surprise History
The company boasts a stellar earnings surprise track. Its bottom line surpassed estimates in three of the trailing four quarters (missed the mark in one), the average surprise being 5.09%. This is depicted in the chart below:
Cigna Corporation Price and EPS Surprise
Cigna Corporation price-eps-surprise | Cigna Corporation Quote
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cigna this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cigna has an Earnings ESP of +1.01%. This is because the Most Accurate Estimate of $3.73 is pegged higher than the Zacks Consensus Estimate of $3.66. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cigna carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks worth considering from the healthcare space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Adamas Pharmaceuticals, Inc. has an Earnings ESP of +1.26% and a Zacks Rank of 3, currently.
Kodiak Sciences Inc. (KOD - Free Report) has an Earnings ESP of +28.31% and is presently Zacks #3 Ranked.
Catalyst Biosciences, Inc. has an Earnings ESP of +13.64% and is a #3 Ranked player at present.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>