Cigna Corp.CI is a national health benefits company with a comprehensive portfolio of businesses which includes Employee Healthcare, Disability and Life.
Its organizational efficiency plans as well as expansion of Seniors and Medicare business position it well for long run.
The company has a large international presence, which has kept it safe from reform.
Cigna is due to be acquired by Anthem Inc. The merger, which will most likely culminate in the second half of 2016, would help Cigna (currently holding fourth rank) to leapfrog to the number one rank, in terms of membership in the U.S. health insurance industry, leaving behind UnitedHealth Group Inc. (UNH), which currently holds the top position.
Cigna does have a decent history when it comes to earnings as the stock has beaten estimates in each of the last four reported quarters making for an average surprise of 5.9%.
Currently, Cigna has a Zacks Rank #4 (Sell), but that could definitely change following Cigna earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : Cigna beat on earnings. Our consensus called for EPS of $2.17, and the company reported EPS of $2.32.
Revenue : Revenues of $9.9 billion outperformed the Zacks Consensus Estimate of $9.6 billion.
Key Stats to Note :
Premiums of $7.7 billion increased 4.6% year over year. All the segments of the company - Global Health Care, Global Supplemental Benefits and Group Disability and Life - registered premium growth.
Total Medical Customers totaled 15.1 million as on Mar 31, 2016, up 3.2% year over year.
Cigna gave its 2016 earnings guidance. It expects income from operations in the high single digit range, earning per share is expected in the range of $8.95 to $9.35. It expects mid-single digit growth in revenue. The company expects global medical customer growth in low single digits.
Check back later for our full write up on this CI earnings report later!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.