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Cigna (CI) to Post Q4 Earnings: Here's What You Should Know
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Cigna Corporation (CI - Free Report) is set to report its fourth-quarter 2022 results on Feb 3, before the opening bell.
In the last reported quarter, the health service company’s adjusted earnings per share of $6.04 beat the Zacks Consensus Estimate by 6%, primarily on solid performances of the Evernorth and Cigna Healthcare businesses, and strong membership growth. However, the upside was partly offset by higher benefits and expenses.
The Zacks Consensus Estimate and our estimate for fourth-quarter earnings per share of $4.84 suggest a 1.5% increase from the prior-year reported figure of $4.77. The consensus mark has been unchanged over the past week. The consensus estimate for fourth-quarter revenues of $45.6 billion indicates a 0.2% decrease from the year-ago reported figure, while our estimate suggests a 2.9% year-over-year decline.
Cigna’s earnings beat estimates in all the trailing four quarters, the average being 9.8%. This is depicted in the graph below.
Strong performances across CI’s Evernorth and Cigna Healthcare businesses are likely to have contributed to its fourth-quarter performance. The Evernorth unit is expected to have gained from a growing customer base and higher pharmacy script volumes in the to-be-reported quarter.
The Zacks Consensus Estimate for pharmacy revenues implies a 5.9% rise from the year-ago quarter’s actuals. The metric is expected to have aided Evernorth’s December-end quarter's performance. The consensus mark for Evernorth’s revenues is pegged at $36,308 million, signaling a 3.5% year-over-year increase.
The Zacks Consensus Estimate for pre-tax adjusted income from Evernorth is pegged at $1,749 million for the fourth quarter, indicating a 7% year-over-year increase, whereas our estimate indicates 9.4% growth. The consensus estimate for the pre-tax income of Cigna Healthcare predicts an 8.3% jump from the prior-year period, while our estimate suggests a 4.6% increase.
The consensus estimate for the medical care ratio for the fourth quarter is pegged at 85%, suggesting a year-over-year improvement of 200 basis points. These are expected to have helped the company increase its profits year over year.
However, our estimate for pre-tax income from other operations is pegged at $178.5 million, indicating a decline of 18%. Also, the Zacks Consensus Estimate for premiums signals a 6.7% year-over-year decline for the fourth quarter, whereas our estimate suggests an 11.7% fall from the year-ago period’s reported figure.
Cigna’s net investment income is expected to have taken a hit in the fourth quarter. The consensus mark for net investment income is pegged at $289 million, suggesting a decrease of 23.9% from the prior-year quarter. Our estimate for the metric indicates a 35.8% decrease. The decline in the metric is expected to have partially offset the positives in the quarter under review, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict 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 chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $4.84 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cigna currently carries a Zacks Rank #2.
Stocks to Consider
While an earnings beat looks uncertain for Cigna, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Haemonetics’s bottom line for the to-be-reported quarter is pegged at 79 cents per share. It has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. HAE beat earnings estimates in all the past four quarters, the average surprise being 12.1%.
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +140.00% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Ardelyx’s earnings per share for the to-be-reported quarter indicates a 103.2% year-over-year improvement. ARDX witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
ImmunoGen, Inc. has an Earnings ESP of +11.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for ImmunoGen’s bottom line for the to-be-reported quarter has been unchanged over the past week. IMGN beat earnings estimates in two of the past four quarters and missed on the other occasions, the average surprise being 7.4%.
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Cigna (CI) to Post Q4 Earnings: Here's What You Should Know
Cigna Corporation (CI - Free Report) is set to report its fourth-quarter 2022 results on Feb 3, before the opening bell.
In the last reported quarter, the health service company’s adjusted earnings per share of $6.04 beat the Zacks Consensus Estimate by 6%, primarily on solid performances of the Evernorth and Cigna Healthcare businesses, and strong membership growth. However, the upside was partly offset by higher benefits and expenses.
Let’s see how things have shaped up before the fourth-quarter earnings announcement.
What Do Estimates Say?
The Zacks Consensus Estimate and our estimate for fourth-quarter earnings per share of $4.84 suggest a 1.5% increase from the prior-year reported figure of $4.77. The consensus mark has been unchanged over the past week. The consensus estimate for fourth-quarter revenues of $45.6 billion indicates a 0.2% decrease from the year-ago reported figure, while our estimate suggests a 2.9% year-over-year decline.
Cigna’s earnings beat estimates in all the trailing four quarters, the average being 9.8%. This is depicted in the graph below.
Cigna Corporation Price and EPS Surprise
Cigna Corporation price-eps-surprise | Cigna Corporation Quote
Factors to Note
Strong performances across CI’s Evernorth and Cigna Healthcare businesses are likely to have contributed to its fourth-quarter performance. The Evernorth unit is expected to have gained from a growing customer base and higher pharmacy script volumes in the to-be-reported quarter.
The Zacks Consensus Estimate for pharmacy revenues implies a 5.9% rise from the year-ago quarter’s actuals. The metric is expected to have aided Evernorth’s December-end quarter's performance. The consensus mark for Evernorth’s revenues is pegged at $36,308 million, signaling a 3.5% year-over-year increase.
The Zacks Consensus Estimate for pre-tax adjusted income from Evernorth is pegged at $1,749 million for the fourth quarter, indicating a 7% year-over-year increase, whereas our estimate indicates 9.4% growth. The consensus estimate for the pre-tax income of Cigna Healthcare predicts an 8.3% jump from the prior-year period, while our estimate suggests a 4.6% increase.
The consensus estimate for the medical care ratio for the fourth quarter is pegged at 85%, suggesting a year-over-year improvement of 200 basis points. These are expected to have helped the company increase its profits year over year.
However, our estimate for pre-tax income from other operations is pegged at $178.5 million, indicating a decline of 18%. Also, the Zacks Consensus Estimate for premiums signals a 6.7% year-over-year decline for the fourth quarter, whereas our estimate suggests an 11.7% fall from the year-ago period’s reported figure.
Cigna’s net investment income is expected to have taken a hit in the fourth quarter. The consensus mark for net investment income is pegged at $289 million, suggesting a decrease of 23.9% from the prior-year quarter. Our estimate for the metric indicates a 35.8% decrease. The decline in the metric is expected to have partially offset the positives in the quarter under review, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict 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 chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $4.84 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cigna currently carries a Zacks Rank #2.
Stocks to Consider
While an earnings beat looks uncertain for Cigna, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Haemonetics’s bottom line for the to-be-reported quarter is pegged at 79 cents per share. It has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. HAE beat earnings estimates in all the past four quarters, the average surprise being 12.1%.
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +140.00% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Ardelyx’s earnings per share for the to-be-reported quarter indicates a 103.2% year-over-year improvement. ARDX witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
ImmunoGen, Inc. has an Earnings ESP of +11.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for ImmunoGen’s bottom line for the to-be-reported quarter has been unchanged over the past week. IMGN beat earnings estimates in two of the past four quarters and missed on the other occasions, the average surprise being 7.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.