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 Corporation (CI - Free Report) reported third-quarter 2021 earnings of $5.73 per share, which outpaced the Zacks Consensus Estimate by 9.6%. The bottom line improved 29.9% year over year.
The company’s results benefited from strong top-line growth resulting from solid contributions from its businesses.
Adjusted revenues improved 8.6% year over year to $44.3 billion, courtesy of well-performing segmental performances. The top line beat the consensus mark by 3.2%.
The company saw an uptick of 59,000 customers on a year-over-year basis to 17 million in its medical enrollment in the quarter under review, attributable to customer growth in U.S. Government and International markets.
The selling, general and administrative expense ratio came in at 7%, which improved 110 basis points (bps) year over year driven by top-line growth, consistent expense efficiency and the repeal of the health insurance industry tax.
Cigna Corporation Price, Consensus and EPS Surprise
Evernorth: Adjusted revenues of the segment climbed 13% year over year to $33.6 billion in the third quarter. The improvement came on the back of solid organic growth in retail network and specialty pharmacy services.
Adjusted operating income rose 7% year over year to $1.5 billion, courtesy of business growth and advantages stemming from the efficient supply chain management.
Meanwhile, sound organic growth enabled Evernorth to fulfil 411 million adjusted pharmacy scripts in the third quarter, which grew 8% year over year.
U.S. Medical: The segment reported adjusted revenues of $10.5 billion, which advanced 9% year over year. Higher customer wins in Medicare Advantage and Individual business, improved premiums and increased net investment income contributed to the segment’s results.
Adjusted operating income surged 30.5% year over year to $988 million in the quarter under review. The uptick was driven by improved net investment income, higher specialty contributions and the repeal of the health insurance industry tax.
International Markets: Adjusted revenues rose 10% year over year to $1.6 billion in the third quarter, courtesy of consistent business growth and higher net investment income.
Adjusted operating income of $250 million increased 20.2% year over year driven by an uptick in net investment income and reduced expenses.
Capital Position (as of Sep 30, 2021)
Cigna’s debt-to-capitalization ratio of 42% at the third-quarter end improved 80 bps year over year.
Shareholders’ equity of $47.4 billion dipped 1.3% from the prior-year comparable period.
Till Nov 3, 2021, the company bought back 26.5 million shares of common stock worth around $6.3 billion.
Business Update
On Oct 7, 2021, Cigna inked a deal to sell its life, accident and supplemental benefits businesses to insurer Chubb Limited (CB - Free Report) . Subject to regulatory approval, the transaction is expected to be completed in 2022. Besides, the deal is likely to generate after-tax net proceeds of roughly $5.4 billion for Cigna. This announcement is in sync with Cigna’s efforts to streamline business by intensifying focus on its global health services portfolio.
2021 Guidance Revised
The company anticipates adjusted revenues for this year at a minimum of $172 billion (up from the prior estimate of “at least $170 billion”).
Earnings per share (EPS) is now estimated to be a minimum of $20.35, higher than the prior guidance of “at least $20.20.”
The company expects total medical customer growth of at least 3,50,000 (unchanged from the prior guidance).
Of the medical sector players that reported third-quarter results so far, the bottom lines of Humana Inc. (HUM - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cigna (CI) Q3 Earnings Beat Estimates, Ups '21 EPS View
Cigna Corporation (CI - Free Report) reported third-quarter 2021 earnings of $5.73 per share, which outpaced the Zacks Consensus Estimate by 9.6%. The bottom line improved 29.9% year over year.
The company’s results benefited from strong top-line growth resulting from solid contributions from its businesses.
Adjusted revenues improved 8.6% year over year to $44.3 billion, courtesy of well-performing segmental performances. The top line beat the consensus mark by 3.2%.
The company saw an uptick of 59,000 customers on a year-over-year basis to 17 million in its medical enrollment in the quarter under review, attributable to customer growth in U.S. Government and International markets.
The selling, general and administrative expense ratio came in at 7%, which improved 110 basis points (bps) year over year driven by top-line growth, consistent expense efficiency and the repeal of the health insurance industry tax.
Cigna Corporation Price, Consensus and EPS Surprise
Cigna Corporation price-consensus-eps-surprise-chart | Cigna Corporation Quote
Strong Segmental Performances
Evernorth: Adjusted revenues of the segment climbed 13% year over year to $33.6 billion in the third quarter. The improvement came on the back of solid organic growth in retail network and specialty pharmacy services.
Adjusted operating income rose 7% year over year to $1.5 billion, courtesy of business growth and advantages stemming from the efficient supply chain management.
Meanwhile, sound organic growth enabled Evernorth to fulfil 411 million adjusted pharmacy scripts in the third quarter, which grew 8% year over year.
U.S. Medical: The segment reported adjusted revenues of $10.5 billion, which advanced 9% year over year. Higher customer wins in Medicare Advantage and Individual business, improved premiums and increased net investment income contributed to the segment’s results.
Adjusted operating income surged 30.5% year over year to $988 million in the quarter under review. The uptick was driven by improved net investment income, higher specialty contributions and the repeal of the health insurance industry tax.
International Markets: Adjusted revenues rose 10% year over year to $1.6 billion in the third quarter, courtesy of consistent business growth and higher net investment income.
Adjusted operating income of $250 million increased 20.2% year over year driven by an uptick in net investment income and reduced expenses.
Capital Position (as of Sep 30, 2021)
Cigna’s debt-to-capitalization ratio of 42% at the third-quarter end improved 80 bps year over year.
Shareholders’ equity of $47.4 billion dipped 1.3% from the prior-year comparable period.
Till Nov 3, 2021, the company bought back 26.5 million shares of common stock worth around $6.3 billion.
Business Update
On Oct 7, 2021, Cigna inked a deal to sell its life, accident and supplemental benefits businesses to insurer Chubb Limited (CB - Free Report) . Subject to regulatory approval, the transaction is expected to be completed in 2022. Besides, the deal is likely to generate after-tax net proceeds of roughly $5.4 billion for Cigna. This announcement is in sync with Cigna’s efforts to streamline business by intensifying focus on its global health services portfolio.
2021 Guidance Revised
The company anticipates adjusted revenues for this year at a minimum of $172 billion (up from the prior estimate of “at least $170 billion”).
Earnings per share (EPS) is now estimated to be a minimum of $20.35, higher than the prior guidance of “at least $20.20.”
The company expects total medical customer growth of at least 3,50,000 (unchanged from the prior guidance).
Zacks Rank
Cigna presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that reported third-quarter results so far, the bottom lines of Humana Inc. (HUM - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.